- Crypto markets face heightened volatility as $443M in long positions are liquidated following robust U.S. jobs data.
- A strong labor market signals fewer rate cuts, pressuring Bitcoin, Ethereum, and risk-on assets.
The crypto market is down on the 9th of January, as a combination of stronger-than-expected U.S. economic data and significant liquidation events weigh heavily on investor sentiment.
The downturn has impacted major cryptos like Bitcoin[BTC] and Ethereum[ETH], sparking concerns over the market’s ability to sustain its recent momentum.
Stronger-than-expected U.S. jobs data sends shockwaves
On the 8th of January, the U.S. Bureau of Labor Statistics released the latest Job Openings and Labor Turnover Survey (JOLTS), revealing 8.096 million job openings for November 2024. This figure far exceeded the consensus estimate of 7.605 million, signaling robust labor market demand.
Stronger job openings data suggest the U.S. economy remains resilient, despite concerns about slowing growth. While this is good news for the broader economy, it has significant implications for monetary policy.
A strong labor market reduces the likelihood of aggressive rate cuts by the Federal Reserve, a scenario that typically benefits risk-on assets like cryptocurrencies.
The anticipation of higher interest rates for a longer period has prompted many investors to shift away from speculative assets, contributing to the current downturn in the crypto market.
Liquidations amplify the downturn
Adding to the pressure, the crypto market experienced its largest liquidation event of the year.
According to the data, long liquidations totaled a staggering $443.023 million, while short liquidations reached $135.539 million over the last 24 hours.
AMBCrypto’s analysis of the
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Author: Adewale Olarinde
