Bitcoin prices have declined in the last few days, falling to nearly $92,500 after robust U.S. economic data impacted Fed rate cut expectations.

The data, which conflict with the U.S. central bank's disinflation efforts, prompted investors to further dial back their rate-cut expectations for 2025. Fed funds futures traders assigned a 4.8% chance the Fed will hold rates steady at the Jan. 29 meeting, down from an 8.6% probability a day earlier, according to the CME FedWatch tool.

Key Takeaways Bitcoin tumbled on Tuesday as labor market data underscored the strength of the U.S. economy, dimming hopes that the Federal Reserve will cut interest rates.Risk-on assets like bitcoin tend to fall in response to news indicating that reductions in rates are less likely.

Bitcoin extended its losses on Wednesday, erasing a brief rebound past $100,000 due to fears of slower interest rate cuts in 2025. The cryptocurrency fell over 4% to $95,427 by 14:51 GMT, after dropping more than 5%