Bitcoin (BTCUSD) tumbled Tuesday after better-than-expect labor market data underscored the strength of the U.S. economy, dimming hopes that the Federal Reserve will cut interest rates.

Bitcoin was trading $97,000 late Tuesday afternoon, down from an overnight high of nearly $103,000. The digital currency had moved above $100,000 on Monday for the first time in nearly three weeks.

Risk-on assets, such as bitcoin and other crypto assets, tend to fall in conditions that are less conducive to lower interest rates, as it means there will be less money to throw around at such assets, and yields on bonds will be more appealing. The Fed has reduced its benchmark rate at each of its last three policy meetings—the first cuts in four years—but warned that the pace of easing will likely slow as inflation pressures persist.

Bitcoin Opportunity Fund co-founder and Managing Partner James Lavish said in a post on X that investors are now also asking whether inflation could make a strong return in a manner similar to what was seen in the 1970s.

Non-bitcoin crypto assets were down even more than bitcoin on Tuesday, with ether down 8% and solana down over 7% over the past 24 hours at the time of this writing. According to Farside Investors, inflows for the bitcoin exchange-traded funds (ETFs) neared $1 billion on Monday, as foreshadowed by the accompanying price rise. Ether ETFs also saw $128.7 million of inflows.

In terms of crypto-related stocks, bitcoin treasury company MicroStrategy (MSTR) fell 10% on Tuesday and crypto exchange giant Coinbase Global (COIN) dropped 8%. Shares of bitcoin miner Marathon Holdings (MARA) slid 7%.