Bitcoin’s Friday rally fades quickly
A morning surge that pushed bitcoin briefly above $92,000 didn’t last. The cryptocurrency spent the rest of Friday quietly retreating, settling around $90,300 by late afternoon. That’s down nearly 1% over the past day.
It’s becoming a familiar pattern, I think. While most other assets are moving higher, bitcoin just can’t seem to gain traction. The Nasdaq is up 1%, the S&P 500 gained 0.8%, and even precious metals and crude oil are surging. Bonds are marginally ahead too.
Mixed economic signals
The U.S. employment report for December showed some conflicting data. Job gains came in at just 50,000 last month, below the 60,000 economists had expected. Previous months saw sizable downward revisions too. But the unemployment rate fell to 4.4% from 4.6% in November, which was better than the expected drop to 4.5%.
Consumer sentiment seems to be improving slightly. The University of Michigan Sentiment Index for January rose to 54, beating forecasts of 53.5. Though that inflation expectations component rose to 4.2% from 4.1%. That gauge remains pretty political though—Democrats expect 5% inflation while Republicans expect just 1%.
Market reactions and waiting games
Crypto-related stocks are mostly lower today. Coinbase is down 2.3%, Gemini dropped 4.5%, and MicroStrategy fell 5.6%. There’s an interesting divergence though—bitcoin miners that have shifted toward AI infrastructure are actually seeing gains. Hut 8, IREN, and Core Scientific are all up 2% to 4%.
There’s also a Supreme Court decision that didn’t happen today. Many were expecting a ruling on the constitutionality of the Trump Administration’s tariff regime, but the court didn’t publish that decision. We’ll have to wait until next Wednesday for more case decisions.
The bigger picture
What strikes me is how bitcoin continues to move differently from traditional markets. For weeks now, it’s been failing to participate in broader market rallies. Some analysts think this might be setting up for a bigger move later, perhaps similar to last year’s rally that pushed prices to $126,000.
But for now, the pattern holds. A quick morning surge, then a gradual retreat. The $90,000 level seems to be acting as something of a magnet. Whether it holds as support or becomes resistance remains to be seen.
Trading volume appears relatively normal, nothing particularly unusual there. The lack of sustained momentum is what stands out. Maybe it’s just consolidation after recent moves. Or perhaps there are larger forces at play that aren’t immediately obvious from the price action alone.
We’ll see what next week brings, especially with those Supreme Court decisions pending. The tariff ruling could have broader implications for markets, though how directly it affects crypto is less clear.
