The crypto industry is not off to a good start this 2025, particularly as towards the end of the year and when we entered a new calendar, the market saw significant crashes that are still ongoing. From the bullish market in the last months of 2024, there are speculations that it is nearly over and is transitioning to a bearish one as investors are already dumping loads of their digital assets.
One of the latest reasons for the crypto dumping trend that is happening now is the latest report from the US JOLTS which while it talked about a healthy labor market, is interpreted as a bad sign for the blockchain industry.
Crypto Investors Are Dumping Assets After US JOLTS Report
The United States Job Openings and Labor Turnover Survey (JOLTS) released a new report that talked about spectacular news for the country, but according to Forbes, this is not boding well for the cryptocurrency industry. Investors are now discovered to be dumping their digital assets because of fears surrounding the report, and they are already speculating about inflation and higher interest rates from the Federal Reserve.
According to Watcher.Guru's tracking earlier this week, the crypto market saw a massive dump where investors liquidated $205 million worth of cryptocurrency assets in only one hour, and it was regarded as fear selling.
US JOLTS' report talked about a booming economy for the country with job openings now at 8.098 million, surpassing the initial expectation of 7.730 million. However, this had a negative effect on the blockchain market.
High Interest Rates Are Bad for Crypto? Liquidating Now
According to Forbes, rate cuts for legal tender, including the Federal Reserve's rates, have been considered "bullish for Bitcoin," and this in turn meant great performance for the crypto industry. This is because a weaker US Dollar meant increased demand and popularity for risk-on assets which include cryptocurrency, with low interest rates boding great news for the blockchain which is known for its volatile prices.
Crypto's 2025 Is Still Expected to Be Good
The new year entered with massive hope for the cryptocurrency industry, particularly as 2025 will be a new beginning for digital assets as it will be the first official year when Donald J. Trump is returning for his second term. Trump has aligned himself with the cryptocurrency industry and expressed support for it as part of his campaign, even going as far as to claim that he will transform the US into a "crypto capital."
Moreover, Trump is also building his future administration that will support cryptocurrency where he will appoint an AI czar that will also double as a crypto czar in the future, and this appointee will be responsible for the future regulations. The President-elect also claimed that he would remove SEC Chair Gary Gensler from his post to make way for crypto regulations to push through.
It is also important to note that Trump is not yet sworn in and his Presidency is not yet official, with his presence alone already prompting a massive rally for the crypto industry and his promises are still unmet. That being said, the pressing issue now is how many investors are already growing bearish in the industry, and a lot are already looking to save face by dumping the assets they own because of fears of high interest rates that may be coming.
