The cryptocurrency market posted slight gains on Friday, with investors reacting to the latest US nonfarm payrolls report, which revealed that hiring had slowed in January. Despite the market’s overall growth, volatility and liquidation still impacted traders. Here’s a breakdown of the key cryptocurrency trends and expert insights.
Bitcoin (BTC) experienced a 1.4% increase over the past 24 hours, trading at $97,900. Meanwhile, Ethereum (ETH) saw a decline of 0.7%, settling at $2,680. Other cryptocurrencies, such as XRP and Solana (SOL), saw notable gains, with XRP climbing 5.9% to $2.45 and Solana increasing by 3% to $195, according to CoinGecko data.
Despite these mixed results, the overall cryptocurrency market capitalization remained stable at $3.32 trillion. Market volatility contributed to significant liquidations, with 97,540 traders facing a total of $234 million in losses. Bitcoin led the liquidations with $61 million, followed by Ethereum’s $46 million. Altcoins collectively accounted for $25 million in liquidations, as reported by Coinglass.
Economic Uncertainty Drives Investor Sentiment
Experts believe that the slowdown in hiring has added to the overall uncertainty in the market, prompting investors to speculate on the Federal Reserve’s next move regarding interest rates. The debate around institutional Bitcoin accumulation versus broader macroeconomic risks is adding to the speculation.
Ian Balina, CEO of Token Metrics, commented, “The market today is certainly a reflection of broader macro uncertainty.” He pointed out that factors like inflation data, interest rates, and ongoing US government policies are fueling investor speculation in both traditional and cryptocurrency markets.
Institutional Inflows vs. Short-Term Sell Pressure
Despite the uncertainty, the cryptocurrency market continues to see significant institutional inflows. Balina referenced Strategy’s recent $584 million Bitcoin purchase as an example of bullish institutional activity. However, short-term sell pressure from profit-taking is still a concern for market participants.
James Toledano, COO of Unity Wallet, mirrored Balina’s concerns, noting that similar market conditions occurred during Trump’s first administration. He observed that while tariffs led to inflationary pressures, they didn’t immediately trigger inflation but significantly impacted the financial markets, especially crypto, in ways that mirror current trends.
US Jobs Report Shows Slowdown in Hiring, but Unemployment Rate Drops
The US economy added 143,000 jobs in January 2025, a sharp deceleration from December 2024’s revised addition of 307,000 jobs. Despite the slower job growth, the unemployment rate dropped slightly to 4.0% from 4.1% in December. Economists attribute the slowdown to adverse weather conditions, including wildfires in California and widespread cold weather across the country.
Toledano remains optimistic about the crypto market, stating, “Crypto today is a $3.2 trillion juggernaut, and at this time last year, a single Bitcoin cost $47,000—so things are looking pretty good right now.”
While there are clear uncertainties in the global economy, these sentiments suggest that the cryptocurrency market is on solid ground despite fluctuations and challenges.
A Market in Flux
As the cryptocurrency market navigates through a period of volatility, the reactions to US economic reports and broader macroeconomic factors continue to shape investor sentiment. The interplay between institutional buys and market liquidations, along with concerns about inflation and interest rates, creates a dynamic environment for traders to navigate in the coming months.
