Daily Market Update: Bitcoin Falls Below $90,000 as Stock Futures Drop on Weak Jobs Data

TLDR

• Bitcoin dropped below $90,000 on Thursday after falling 2% in 24 hours, though it remains up 3% for the week
• U.S. spot bitcoin ETFs recorded $486 million in outflows across two consecutive days, the first back-to-back losses of 2025
• Stock market futures declined Thursday morning with Dow and S&P 500 futures down 0.3% and Nasdaq 100 futures falling 0.6%
• Weak economic data showed private-sector payrolls increased by only 41,000 in December, below the 50,000 estimate, pushing Treasury yields lower
• The Federal Reserve rate cut expectations influenced both crypto and stock markets, with traders pricing in at least two quarter-point cuts by year-end

Bitcoin trading fell under the $90,000 mark on Thursday as the cryptocurrency market cooled from its early January gains. The decline came as both crypto and traditional markets reacted to weaker economic indicators.

The leading cryptocurrency dropped approximately 2% over a 24-hour period. Despite the decline, Bitcoin maintained gains of more than 3% for the week.

Ethereum followed a similar pattern, slipping around 3% on Thursday. The second-largest cryptocurrency by market value remained roughly 6% higher over the seven-day period.

U.S. spot bitcoin exchange-traded funds experienced their first consecutive days of outflows for 2025. The ETFs saw more than $486 million leave the funds across the two-day period.

XRP led losses among major cryptocurrencies with a 4.5% drop over 24 hours. However, the token still posted a 17% gain for the week.

Dogecoin maintained the strongest weekly performance among major cryptocurrencies. The meme coin recorded gains exceeding 22% over the seven-day period.

The cryptocurrency market movements tracked shifts in traditional financial markets. Treasury bonds extended gains across the yield curve, with the 10-year Treasury yield declining to around 4.14%.

Private-sector employment data released Wednesday showed weaker than expected growth. ADP Research reported an increase of 41,000 jobs in December, falling short of the median economist estimate of 50,000.

Federal Reserve Rate Cut Expectations Shift Market Sentiment

The weak employment data reinforced expectations that the Federal Reserve may implement rate cuts later in 2025. Rate markets briefly increased bets that the Fed will deliver at least two quarter-point cuts by year-end.

Bond markets across Asia showed similar movements. Australian and New Zealand debt prices rose while Japanese bond futures held gains following a 30-year auction.

Easier monetary policy expectations typically support higher-risk assets like cryptocurrencies. Analysts at B2BINPAY described crypto as a risk asset that depends heavily on bitcoin-led sentiment.

Stock market futures declined Thursday morning following a mixed trading session. Dow Jones Industrial Average futures and S&P 500 futures fell 0.3% while Nasdaq 100 futures dropped 0.6%.

During regular trading Wednesday, both the S&P 500 and Dow closed lower despite hitting new intraday highs. The Nasdaq Composite finished modestly higher after Alphabet shares surged more than 2%.

The stock market rally briefly pushed Google’s parent company ahead of Apple in market value. This marked the first time since 2019 that Alphabet exceeded Apple’s valuation.

Recent Market Developments and Economic Indicators

President Trump announced that Venezuela will send up to 50 million barrels of crude oil to the United States. The U.S. energy secretary stated that America will control the country’s oil output indefinitely going forward.

Oil prices retreated during day trading following the announcement. Traders continue watching for a Supreme Court decision on the legality of tariffs imposed under Trump, with Friday scheduled as an opinion day.

The December jobs report is due Friday, providing investors with insight into economic health. The report will receive increased scrutiny as one of the larger data releases in a reduced slate of governmental output.

Intel stock surged 6.5% following the announcement of new Core Ultra 3 series chips at CES 2026. The technology convention continues to provide information affecting tech stock valuations, with Thursday’s lineup including U.S. senators speaking on AI legal and funding frameworks.

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