Crypto markets fell as Bitcoin (BTC) lost the $100,000 level in US morning hours on Tuesday. This is driven by two stronger-than-expected US economic data. This data threw cold water on the strong momentum of digital assets at the beginning of the year.

The US Bureau of Labor Statistics announced the JOLTS (Labor Demand) report for November. This report pointed to a workforce demand of 8.1 million instead of 7.8 million, beating analysts’ expectations for a decline of 7.7 million.

At the same time, ISM Services Purchasing Managers Index (PMI) data was also announced. PMI, which was announced at 54.1 in December, exceeded expectations of 53.3 and was well above November’s 52.1. Additionally, the Prices Sub-Index was posted very strongly at 64.4. This figure is well above the previous month’s 58.2 and the expected level of 57.5.

While both reports generally did not have a major impact on the market, when they were released together they created tension in the market. In particular, there was a volatility in the US bond market.

The 10-year U.S. Treasury yield rose 5 basis points to 4.68%, reaching near annual highs. This move also negatively affected US stocks. Nasdaq lost more than 1% in the morning hours, while the S&P 500 fell 0.4%.

While Bitcoin was trading just below the $101,000 level in European afternoon hours, it fell to $97,800 as the data was released. This caused Bitcoin to lose the values ​​it gained yesterday, losing 4% in value in the last 24 hours.

Altcoins also experienced major declines. Ethereum’s ether (ETH) and Solana’s SOL tokens lost value by 6-7%. Avalanche’s AVAX and Chainlink’s LINK decreased by 8-9%.

Influenced by the data, prices dropped rapidly, leading to the liquidation of approximately $300 million in long positions, according to CoinGlass data. This was recorded as the first major leverage jump of the year. The strong economic data caused investors to withdraw their interest rate cut expectations for 2025.

Previously, investors had already accepted that there would be no interest rate cut at the Fed’s January meeting. However, investors now see only a 37% chance of a rate cut at the Fed meeting in March. This rate is significantly lower than 50% a week ago.

Looking ahead to the coming years, interest rate cut expectations continue to decline. The CME FedWatch tool shows that investors expect a 25 basis point rate cut only once throughout 2025. This shows that general expectations for the economy have become more cautious.