Bitcoin’s morning surge fades
A brief rally this morning pushed bitcoin to around $92,000, but the gains did not last. By Friday evening, the cryptocurrency was back to $90,300, showing a decline of almost 1% over the past day. This pattern has become familiar lately: while other assets are rising, bitcoin seems stuck.
I think what’s interesting here is the timing. The attempted rally occurred mid-morning US time and then quietly faded away. No dramatic crash, just a slow retreat. It’s almost as if the market tried to push higher, found no support, and then gave up.
Traditional markets are moving in the opposite direction
While bitcoin struggled, traditional markets showed strength. The Nasdaq gained 1% and the S&P 500 rose 0.8%. Prices of precious metals and crude oil surged across the board. Even the bond market rose slightly. This divergence has been typical for several weeks now.
Maybe Bitcoin is waiting for something specific. Or maybe he’s just taking a break from his recent execution. The relationship between crypto and traditional markets is not always straightforward, and they sometimes move in opposite directions for reasons that are not immediately clear.
Mixed economic data emerges
Economic news on Friday was mixed. The December jobs report showed only 50,000 jobs created, below the 60,000 expected. Previous months also saw downward revisions. But the unemployment rate fell to 4.4% from 4.6%, which was better than the expected 4.5%.
The University of Michigan’s confidence index rose slightly to 54, beating forecasts. However, one-year inflation expectations increased from 4.1% to 4.2%. This inflation indicator shows some interesting political divisions: Democrats expect 5% inflation while Republicans only expect 1%.
Crypto Stocks Mostly Declining
Crypto-related stocks have mostly followed bitcoin lower. Coinbase fell 2.3%, Gemini fell 4.5%, and MicroStrategy fell 5.6%. But there have been some bright spots among Bitcoin miners turning to AI infrastructure.
Hut 8, IREN and Core Scientific all gained between 2% and 4%. This suggests that investors could separate purely crypto games from companies branching out into other technology areas. The AI pivot appears to be paying off for some miners, at least in today’s market.
A Supreme Court ruling on Trump-era tariffs was expected but did not materialize Friday. The court will make further decisions next Wednesday, so that’s something to watch.
Overall, it feels like Bitcoin is in a holding pattern. The failed rally attempt shows that there is some buying interest, but not enough to maintain momentum. With mixed economic signals and traditional markets moving differently, crypto appears to be finding its own path for now. Whether this is just a temporary consolidation or something bigger remains to be seen.
