Bitcoin, Asian Stocks Drop as Traders Pare March Fed Rate Cut Bets
Summary
Bitcoin (BTC) dropped 0.8% to $43,600 as Asian stocks fell due to strong U.S. nonfarm payrolls data, reducing expectations for early Fed rate cuts. The data showed 216,000 jobs created in December, beating expectations, and a 4.1% increase in average hourly earnings. This has led to doubts about an early rate cut, with traders now pricing a 60% chance of a cut in March. The rise in yields poses downside risk to risk assets, but the anticipation of a spot ETF launch in the U.S. may support bitcoin. The SEC is expected to approve spot ETFs by Jan. 10, which could lead to a "sell the fact” price drop for bitcoin.
