Cryptocurrencies Slip as Analysts Expect Fed to Pause Rate Cut Cycle Amid Latest Jobs Data

Major cryptocurrencies declined ahead of Monday's US equities open as analysts believe the Federal Reserve is expected to pause its rate-cut cycle following last week's jobs data. Bitcoin (BTC) was down 3.4%, trading at about $91,090 before the bell. Ethereum (ETH) decreased by 5.9% to trade at $3,060. The global crypto market cap fell 4.4% to $3.15 trillion. The CoinDesk Market Index decreased by 3.3% in the past 24 hours. In December, total US nonfarm payrolls rose by 256,000 while unemployment fell to 4.1% from 4.2% in November, according to government data released Friday. The consensus was for a 165,000 increase in jobs, according to a survey compiled by Bloomberg. "With payroll growth beating expectation by a wide margin and the unemployment rate ticking down from an already-low level, the prospect of an imminent Fed rate cut has fallen by the wayside," Bob Schwartz, Senior Economist at Oxford Economics, wrote in a Friday note. "The Fed is now expected to pause the rate-cutting cycle for at least several months, as a solid jobs report confirms that the economy can withstand the current level of rates for the foreseeable future."The central bank last month cut its benchmark lending rate by 25 basis points and flagged fewer cuts ahead than projected in September. There is a 97% probability the Fed will leave its policy rate unchanged later this month, up from 92% on Jan. 6, according to the CME FedWatch tool. Spot price bitcoin exchange-traded funds last week saw total net inflows of $307.2 million, bringing total net assets in the 11 ETFs to $107.64 billion, according to data compiled by research platform SoSoValue. Their ethereum counterparts saw about $185.9 million in outflows last week, bringing total net assets to $11.61 billion. ARK 21Shares Bitcoin ETF (ARKB), Bitwise Bitcoin ETF , iShares Bitcoin Trust and Fidelity Wise Origin Bitcoin Fund (FBTC) were among the top 20 US ETF launches of all time, Bloomberg analyst James Seyffart said on social media platform X on Friday. The ETFs began US trading on Jan. 11, 2024. This week's economic calendar has the producer price index for December scheduled to be released on Tuesday, followed by the consumer price index for the same month on Wednesday. Last month's retail sales report is out on Thursday. The Beige Book, a compilation of economic and business reports from the 12 regional Fed branches, is scheduled to be released on Wednesday.