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Crypto falls as strong U.S. jobs data hit rate-cut hopes
Bitcoin and altcoins tumbled after robust U.S. jobs data dimmed hopes for early Fed rate cuts. Ripple's legal battle with the SEC remains a key focus ahead of critical deadlines.
Bitcoin dropped as strong December jobs data pushed rate-cut expectations to 2025.
U.S. payrolls grew by 256,000, lifting 10-year yields to 14-month highs.
The SEC must file an appeal in the Ripple case by January 15, amid leadership changes.
XRP trading volume surged 80%, spiking prices to $2.60 before easing.
Cryptocurrencies fell on Monday after a robust U.S. jobs report for December dampened expectations of early interest rate cuts by the Federal Reserve. Bitcoin (BTC), the world’s largest cryptocurrency, led the downturn, with major altcoins following suit.
The U.S. economy added 256,000 jobs in December, significantly exceeding the forecasted 165,000. This unexpected surge in employment growth pushed 10-year Treasury yields to their highest level in 14 months. The data has recalibrated market expectations, with analysts now predicting only one rate cut in 2025, reducing investor appetite for riskier assets like cryptocurrencies.
The broader crypto market mirrored Bitcoin’s slide, with altcoins registering notable losses. XRP dropped 3%, BNB declined 2.1%, Solana slipped 2.2%, while Cardano and Dogecoin fell 7% and 3.75%, respectively. Tron and Avalanche recorded losses exceeding 5%, and Sui tumbled 7.5%, bringing the global crypto market capitalization down by 0.9% to $3.26 trillion.
Ripple vs. SEC: Key deadlines approach
In legal developments, the SEC is required to file its appeal-related opening brief in the Ripple case by Wednesday, January 15. This follows the SEC’s October 2024 appeal notice challenging the ruling on Ripple’s programmatic sales of XRP, which a judge deemed did not violate securities laws.
Ripple gained momentum in 2023 after Judge Analisa Torres’ landmark ruling allowed crypto exchanges to relist XRP, bolstering the token’s adoption. However, uncertainty clouds the case as political changes loom over the SEC, with the anticipated exit of Chair Gary Gensler on January 20 and the expected appointment of Paul Atkins under President Trump’s administration. Speculation is rife that Atkins may scale back the SEC’s enforcement efforts, including the Ripple appeal.
XRP gains traction amid volatility
Despite broader market weakness, XRP has experienced heightened trading activity. Over the past 24 hours, trading volume surged by 80% to $8.99 billion, propelling its price by 9% to a high of $2.60 during Saturday’s session before easing slightly. The market’s focus on Ripple’s legal standing and the potential implications for the broader crypto industry remain key drivers of XRP’s price action.
