Bitcoin’s morning surge fades
A quick morning rally that pushed bitcoin toward $92,000 didn’t hold on Friday. The cryptocurrency quietly retreated throughout the session, settling around $90,300 by late afternoon. That’s down nearly 1% over the past 24 hours, which feels like a continuation of recent patterns.
I’ve noticed bitcoin struggling to gain ground while other assets move higher. The Nasdaq was up 1%, the S&P 500 gained 0.8%, and precious metals and crude oil were surging across the board. Even the bond market was marginally ahead. It’s interesting how bitcoin sometimes moves independently from traditional markets, but lately it seems to be missing out on broader rallies.
Mixed economic signals
The economic data on Friday was somewhat mixed, which might explain some of the market uncertainty. The December employment report showed just 50,000 jobs added last month, below economist forecasts of 60,000. Previous months saw sizable downward revisions too. But the unemployment rate fell to 4.4% from 4.6% in November, which was better than expected.
The University of Michigan Sentiment Index for January rose to 54, beating forecasts. However, the closely watched one-year inflation expectations increased to 4.2% from 4.1%. This gauge remains highly susceptible to political affiliation—Democrats expect inflation of 5% while Republicans expect just 1%. That polarization makes interpreting the data trickier.
Market reactions and pending decisions
Crypto-related stocks mostly moved lower on Friday. Coinbase dropped 2.3%, Gemini fell 4.5%, and MicroStrategy declined 5.6%. Interestingly, some bitcoin miners that have pivoted to AI infrastructure saw gains—Hut 8, IREN, and Core Scientific all rose 2% to 4%. That divergence suggests investors might be looking at different value propositions within the crypto ecosystem.
A Supreme Court decision on the constitutionality of the Trump Administration’s tariff regime will have to wait. Many watchers expected a ruling Friday morning, but the tariff case wasn’t among those published by the court. More decisions are expected next Wednesday, which could create additional market uncertainty.
Looking ahead, bitcoin’s inability to hold gains above $92,000 raises questions about near-term momentum. The cryptocurrency has shown resilience at lower levels, but breaking through resistance has proven difficult. Perhaps the mixed economic data and pending court decisions are keeping some investors on the sidelines.
It’s worth noting that bitcoin’s performance relative to other assets might not tell the whole story. The cryptocurrency has its own dynamics, influenced by factors like adoption rates, regulatory developments, and institutional interest. Still, the pattern of failed rallies followed by retreats suggests some underlying caution in the market.
Traders will likely watch for whether bitcoin can establish support around current levels or if further declines are in store. The broader market context—with stocks rising and economic indicators sending mixed signals—creates a complex backdrop for cryptocurrency pricing decisions.
