Bitcoin Edges Higher Amid Jobs Report but Faces Weekly Decline

Bitcoin recorded modest gains on Friday following the release of December’s stronger-than-expected jobs report, but it remains on track for significant weekly losses. Heightened concerns over slower U.S. interest rate cuts and potential Bitcoin sales by the Department of Justice (DOJ) dampened investor sentiment.

The broader crypto market mirrored declines in risk-driven assets as traders turned to safe havens like gold and the U.S. dollar due to growing economic uncertainty. Bitcoin rose 1.9% to $93,876 by 09:09 ET, recovering from an intraday low of $92,474. Despite the rebound, Bitcoin is down 4.4% this week, marking its worst weekly performance since late September.

Reports that the DOJ received approval to sell $6.5 billion in confiscated Bitcoin from the Silk Road dark web platform added to selling pressure. This move dashed speculation that President Donald Trump might convert these holdings into a strategic Bitcoin reserve. While Trump has pledged crypto-friendly policies and hinted at creating a reserve, analysts question the feasibility of such plans given Congress’s fiscal constraints.

Bitcoin’s earlier rally to record highs of over $108,000 in late 2024 was fueled by optimism over Trump’s regulatory nominations and his pro-crypto stance. However, recent developments have weighed heavily on market sentiment.

The December jobs report also contributed to market volatility. The U.S. economy added 256,000 jobs, surpassing expectations of 160,000, while the unemployment rate dropped to 4.1%. These strong figures led investors to reassess the Federal Reserve’s outlook for rate cuts in 2025, negatively impacting risk assets.

Ether gained 0.6% to $3,259, while XRP rose 1.8% to $2.284. Altcoins like Solana, Cardano, and Polygon posted gains of up to 5%, with DOGE climbing 2.8%.