Could the Fed delay cutting interest rates until June? Cryptocurrencies plunge as U.S. stocks

Due to data released by the US showing a stable job market and a strong service sector, traders expect the Fed may delay further rate cuts until after June, leading to an intensified sell-off in Treasuries and a severe hit to the stock market. Cryptocurrencies have fallen again, with Bitcoin dropping to $97K and Ethereum plunging 8%, with $540 million in liquidations across the network in 24 hours.

Strong service sector, stable job market, Fed may slow rate cut pace

Driven by a surge in the business services sector, job openings in November reached a six-month high, with the US JOLTs job openings in November reaching 8.098 million, significantly exceeding expectations and higher than the previous 7.839 million, further demonstrating the solidity of the labor market.

The US ISM Services Index for December reported 54.1, higher than the expected 53.5 and the previous 52.1, indicating that the US service sector remains very strong.

With a stable job market and a strong service sector, traders expect the Fed may slow the pace of its rate cut cycle. According to the CME FedWatch index, traders expect the Fed may delay further rate cuts until after June, and the rate cut magnitude this year may only be 25 basis points.

The Fed's latest meeting minutes will be released today (1/8), and are expected to provide more information on officials' interest rate forecasts.

Bitcoin falls to $97K, Ethereum drops 8%, $540 million in liquidations

Bitcoin, which had just managed to return to the $100,000 level yesterday, fell back again in line with the US stock market, dropping to $96,181 at one point this morning.

Ethereum's 24-hour decline was even higher at 8%, closing at $3,384 before the deadline.

According to Coinglass, 24-hour network-wide liquidations reached $540 million, with $118 million in Ethereum positions being liquidated, and Bitcoin also reaching $100 million.

With Trump set to officially take office as US President on 1/20, the market is more apprehensive about his tariff and regulatory measures. Short-term market volatility is high, and investors need to be aware of their own risks and manage their positions accordingly.