Bitcoin fails to consolidate above $90,000 amid weak US macro data

Amid weak US employment data, investors are increasingly turning to safer assets. Bitcoin (BTC) continues to struggle to break the psychologically important $90,000 price level. In this article, we'll examine the reasons why digital gold is failing to secure new highs, as well as the influence of macroeconomic factors on its performance.

Bitcoin's Weak Performance

Over the past month, Bitcoin has struggled to sustain a sustained rally above $92,000. This has raised concerns among traders and investors seeking explanations for the current situation. Some attribute the coin's weak performance to market manipulation, while others point to growing concerns surrounding the artificial intelligence sector. However, there is no concrete evidence yet to support these claims.

Comparison with Traditional Assets

On Friday, the S&P 500 index traded just 1.3% below its all-time high. Meanwhile, Bitcoin remains 30% below the $126,200 level reached in October. This underscores that, amid current market uncertainty, traders and investors are switching to more stable assets like gold.

The Impact of the Federal Reserve's Balance Sheet Reduction

Another important factor restraining Bitcoin's growth is the Federal Reserve's (Fed) balance sheet reduction. For much of 2025, the Fed has been pursuing policies aimed at reducing liquidity in the financial sector. This creates additional obstacles to the leading cryptocurrency's growth.

Signs of a Weakening Labor Market

In December 2025, the US labor market trend began to show signs of weakening. Weak consumption data cast doubt on the likelihood of future economic growth. Despite clear signals of a shift to a more relaxed monetary policy, traders are increasingly doubtful of the Fed's ability to cut interest rates below 3.5% in 2026.

Political Instability and Its Consequences

The recent US government shutdown, the longest in history, also impacted the market. It disrupted the release of employment and inflation data for November, further clouding the economic outlook. Amid uncertainty, investors tend to avoid risks and seek safer assets.

In Conclusion

Thus, Bitcoin continues to struggle to consolidate above $90,000 amid weak US macro data and growing political instability. Investors are increasingly turning to more stable assets, such as gold, amid uncertainty. The Fed's balance sheet reduction and a weakening labor market are also significantly impacting the cryptocurrency's performance. It will be important to monitor developments in the coming months to see if Bitcoin can overcome its current hurdles and return to growth.