What You Need to Know:

• Bitcoin has reached levels not witnessed in over a month.
• SOL and LINK have shown significant underperformance among altcoins.
• The market downturn follows the anticipation of December’s job report, which could shift predictions on the Federal Reserve's rate adjustments for 2025.

U.S. stock markets observed a day of closure for former President Jimmy Carter, yet the cryptocurrency market continues to operate 24/7, feeling pressure ahead of tomorrow’s employment report.

During late trading, Bitcoin (BTC) has hovered just above $91,000, marking a roughly 3% drop within the last 24 hours.

The wider CoinDesk 20 Index has also decreased, with SOL and LINK standing out as substantial decliners, dropping in double-digit percentages.

This persistent selloff follows a strong rally for the crypto market in the final quarter of 2024, initially ignited by Donald Trump's victory and hopes for favorable regulatory changes from Washington D.C. An additional factor supportive of the cryptocurrency market was the U.S. Federal Reserve's easing monetary policy, having reduced its overnight interest rate significantly. However, subsequent economic reports revealing stronger-than-expected economic growth and inflation have prompted an increase in long-term interest yields, complicating this supportive environment.

Recent drops occurred ahead of the much-anticipated December jobs report. Strong economic performance could shift market expectations, not just negating the likelihood of rate cuts in 2025 but potentially indicating a need for future rate hikes.

Crypto prices continued to plunge on Thursday (Eva Blue/Unsplash)