Bitcoin Falters Amid Jobless Claims Report
Bitcoin’s price slipped by 3% to $97,000, failing to maintain its recent momentum above the $100,000 mark. The decline followed the release of US jobless claims data, which showed figures slightly above expectations at 217,000 versus the projected 210,000. Despite this, the increase did not signify a significant shift in labour market health.
The muted reaction in equities underscored this stability, with stocks remaining steady at the US open. A weaker-than-expected Consumer Price Index (CPI) report earlier in the week had fuelled optimism, leading to rallies across global markets. Bitcoin surged 4.13% to $100,800 before retracing below the psychological $100,000 milestone.
Trading firm QCP Capital highlighted strong capital inflows to US spot Bitcoin exchange-traded funds (ETFs), totalling $755 million on 15 January. “The swift recovery in inflows reflects strong institutional demand and suggests an exciting outlook for crypto,” QCP stated.
Altcoins Take the Spotlight
While Bitcoin’s price wobbled, altcoins stole the show. XRP reached an all-time high of $3.36 on Bitstamp, while Solana (SOL) recorded an impressive 8% daily gain, closing in on price discovery at $214.68.
BTC/USD 1-hour chart. Source: TradingView
The rally in altcoins was partly driven by reports suggesting the incoming Donald Trump administration would create a broader crypto reserve, favouring US-based altcoins. This speculation spurred a rotation of profits from Bitcoin into Ethereum and other altcoins, evidenced by Bitcoin’s dominance dropping from 58.6% to 57.4%.
QCP Capital noted that for an altcoin season to be confirmed, Bitcoin dominance would need to fall below the 57.3% support level while stabilising around the $100,000 mark.
Caution Over Federal Reserve Policy
Despite the upbeat sentiment in crypto and equities, caution remains over the Federal Reserve’s monetary policy. Market expectations for a rate cut in the upcoming Federal Open Market Committee (FOMC) meeting are minimal, with CME Group’s FedWatch Tool indicating a mere 2.7% chance of easing.
US spot Bitcoin ETF netflows (screenshot). Source: Farside Investors
Commentary from The Kobeissi Letter highlighted a disconnect between consumer sentiment and market performance. “Many consumers say they believe we are in a recession. Meanwhile, the stock market is less than 5% away from an all-time high,” it noted, underscoring the inflation-driven divide between Wall Street and Main Street.
As Bitcoin continues to battle the $100,000 threshold, market participants are keeping a close watch on altcoin performance and macroeconomic signals for further direction.
