Daily Market Update: Crypto and Stock Markets Drop After Weak Employment Data

TLDR

• Bitcoin price fell below $90,000 Thursday, down 2% in 24 hours despite 3% weekly gains as early January rally cooled
• Bitcoin ETF outflows reached $486 million over two days, marking first consecutive losses in 2025 for spot BTC funds
• Stock market futures dropped with Dow and S&P 500 down 0.3%, Nasdaq futures falling 0.6% after mixed Wednesday session
• December jobs report showed only 41,000 new private-sector positions versus 50,000 forecast, weakening labor market outlook
• Fed rate cut bets increased as weak jobs data pushed 10-year Treasury yield down to 4.14%, supporting risk assets

Bitcoin price fell below $90,000 on Thursday as the cryptocurrency market pulled back from early January gains. The move lower came alongside stock market declines following disappointing employment data.

Bitcoin dropped 2% over 24 hours to trade near $90,000. The largest cryptocurrency maintained weekly gains above 3% despite the Thursday decline.

Ethereum price fell 3% on the day while holding 6% gains for the week. Other major cryptocurrencies showed mixed performance across different timeframes.

Bitcoin ETF flows turned negative for the second straight day. U.S. spot bitcoin ETFs recorded outflows exceeding $486 million over the two-day period, marking the first back-to-back losses in 2025.

XRP price led declines among top cryptocurrencies with a 4.5% drop in 24 hours. The token maintained 17% weekly gains despite Thursday’s selloff.

Dogecoin price posted the strongest weekly performance among major coins. The meme cryptocurrency gained more than 22% over seven days while holding most gains Thursday.

Stock market futures declined Thursday morning after a volatile Wednesday session. Dow Jones futures and S&P 500 futures fell 0.3% while Nasdaq 100 futures dropped 0.6%.

The S&P 500 and Dow closed lower Wednesday despite hitting new intraday highs. The Nasdaq Composite ended modestly higher after Alphabet stock surged over 2%, briefly pushing Google parent above Apple in market value.

Weak Jobs Data Fuels Federal Reserve Rate Cut Expectations

December private-sector payroll data came in below expectations Wednesday. ADP Research reported 41,000 new jobs versus the 50,000 economist forecast, raising concerns about labor market strength.

The weak employment numbers pushed Treasury yields lower across the curve. The 10-year Treasury yield fell to around 4.14% as bond prices rose.

Federal Reserve rate cut expectations increased following the jobs miss. Rate markets briefly priced in at least two quarter-point Fed rate cuts by the end of 2025.

Lower interest rate expectations typically support cryptocurrency prices and stock valuations. Easier monetary policy conditions encourage investment in higher-risk assets like Bitcoin and tech stocks.

Bond markets in Asia followed similar patterns Thursday. Australian and New Zealand government debt prices rose while Japanese bond futures held gains after a 30-year debt auction.

Cryptocurrency market analysts attributed Bitcoin price movements to macroeconomic factors. B2BINPAY analysts described crypto as a risk asset heavily dependent on Bitcoin sentiment and broader market conditions.

Oil Prices and Technology Stocks Impact Markets

Oil prices retreated during Wednesday trading after President Trump announced Venezuela will send 50 million barrels of crude to the United States. The U.S. energy secretary said America will control Venezuelan oil output indefinitely.

Intel stock jumped 6.5% after unveiling new Core Ultra 3 series chips at CES 2026. The technology conference continues providing catalysts for tech stock movements throughout the week.

Friday brings the December jobs report and a potential Supreme Court decision on tariff legality. Both events could provide direction for cryptocurrency and stock markets heading into next week.

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