Bitcoin’s price dipped 0.3% on Monday to $94,268.7 amid persistent caution over the Federal Reserve’s interest rate outlook and concerns about increased market liquidity pressures.
Key Factors Influencing Bitcoin’s Decline
1. Stronger U.S. Payroll Data

The U.S. economy added 256,000 jobs in December, surpassing the forecasted 153,000. The unemployment rate also dropped from 4.2% to 4.1%, signaling resilience in the labor market.
These robust figures suggest the Fed may slow its pace of rate cuts in 2025, leading to a stronger U.S. dollar and tighter liquidity—factors that traditionally weigh on cryptocurrency prices.

2. Impact of Government Crypto Sales

Reports indicate the U.S. Department of Justice received approval to sell $6.5 billion worth of Bitcoin confiscated from the Silk Road case.
Previous government liquidations of seized Bitcoin have contributed to increased supply and downward pressure on prices.

3. Treasury Yields and Market Liquidity

Elevated Treasury yields continue to be a headwind for Bitcoin, with some analysts projecting Bitcoin’s price could decline further to around $90,000 if yields remain high.

Broader Market Context
Bitcoin’s recent losses align with a broader pullback in risk assets as traders adjust to shifting monetary policy expectations. The potential for further government crypto sales and global economic uncertainty adds to the bearish sentiment.