Bitcoin Update

it appears that Bitcoin (BTC) has been experiencing a selloff following a rally in Q4 2024, which was partially fueled by Donald Trump's victory and expectations of a friendlier regulatory environment. Another factor supporting crypto was easier monetary policy, with the U.S. Federal Reserve reducing its overnight interest rate since September. However, this support has weakened due to stronger-than-expected economic data, causing yields on long-term interest rates to increase significantly.

As of now, there is ongoing selling pressure in Bitcoin, with today's selloff occurring ahead of the December jobs report, which could potentially show even stronger economic data. This might cause markets to abandon the idea of rate cuts in 2025 and instead start pricing in the need for rate hikes in the near future.

In terms of how low Bitcoin could fall, it's not possible to predict exact price movements with certainty. The context suggests that economic data and changes in monetary policy will continue to influence Bitcoin's value, so future selling pressure may depend on these factors. It is also important to note that the authors mentioned in the context are Stephen Alpher and Krisztian Sandor, both of whom hold BTC and ETH.