QCP Capital: BTC Slides Below $90K As Markets Await US Labor Data To Gauge Fed Policy And Risk Sentiment
In Brief
QCP reports that BTC briefly dropped below $90K, driven by reduced Fed rate cut expectations, ETF outflows, and low liquidity, with markets now watching labor data to determine if the pullback signals a broader risk-off shift.
Singapore-based digital asset firm QCP Capital published a market report highlighting that Bitcoin continued its downward trend this week, briefly falling below the important $90K level. The decline was driven by stronger rate expectations and ongoing exchange-traded fund (ETF) outflows, which have contributed to a more cautious market sentiment. This downward movement was further exacerbated by lower liquidity, which has made Bitcoin more reactive to broader macroeconomic changes.
The pullback comes as market expectations surrounding the Federal Reserve have shifted quickly, moving from a highly anticipated rate cut in December to a more balanced outlook. This recalibration has put pressure on assets like Bitcoin, which are sensitive to interest rate changes. In contrast, equities have found relative stability, supported by strong corporate earnings, especially from hyperscalers that have reported substantial profits and record investments in AI technology.
US Economic Data Resumes, Potentially Impacting Bitcoin Trend
With the US government now fully operational again, the release of official economic data has resumed, providing much-needed insight into the underlying momentum of the economy. Markets are closely monitoring this week’s key indicators, particularly labor market data and the Conference Board’s Leading Economic Index (LEI), which now includes updated vacancy metrics. These figures will be crucial in determining whether labor market tightness or inflation will influence the Federal Reserve’s decision-making through 2026.
On a deeper level, the US economy continues to show a K-shaped recovery, with strong spending from high-income households contrasted by increasing financial pressure on lower-income groups. Federal Reserve Chairman Jerome Powell has emphasized a cautious approach, stating that a rate cut in December is “not guaranteed.”
Overall, the current conditions suggest more of a late-cycle phase rather than a recessionary environment. While fiscal constraints and disparities within the labor market present ongoing risks, strong household balance sheets and resilient corporate capital expenditures are helping to buffer potential downside. The data released this week will be pivotal in determining whether Bitcoin’s recent decline is merely a temporary market adjustment or the beginning of a broader risk-off shift.
As of the latest data, Bitcoin is priced at $91,332, reflecting a slight decline of 0.06% over the past 24 hours. During this period, the price reached a high of $93,688 and a low of $90,013.
The global cryptocurrency market capitalization stands at $3.13 trillion, representing a 0.11% decrease from the previous day. Total trading volume across the cryptocurrency market over the last 24 hours is $163.41 billion, showing a 33.21% drop.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
