Bitcoin Price Drops Below $54,000 Amid Market Volatility Triggered by Disappointing US Jobs Report
Bitcoin experienced a downward trend on September 6, 2024, dropping below $54,000 after briefly hitting $57,000 earlier in the day following the release of the US nonfarm payrolls report. The report revealed a disappointing addition of only 142,000 jobs in August, significantly below expectations, causing a stir in the crypto market.
This sudden shift sent shockwaves through the crypto ecosystem. Bitcoin plummeted to a low of $53,780, marking a 4% decrease over the past 24 hours, settling at $54,101. Speculation arose regarding potential Federal Reserve interest rate cuts, with predictions indicating a 70% likelihood of a 25 basis-point reduction at the upcoming FOMC meeting on September 18.
The decline wasn’t limited to Bitcoin alone. Major altcoins also experienced losses, with Ether dropping by 4.6% to $2,261 within the same 24-hour period. Other notable cryptocurrencies such as Ripple’s XRP and DOGE also saw declines exceeding 4%.
The market turbulence resulted in significant liquidations within the crypto space, with reports estimating around $93 million liquidated in just four hours. These liquidations predominantly affected leveraged long positions, catching traders off guard who were anticipating a continuation of the rally.
Amidst the market upheaval, discussions about potential Federal Reserve actions gained traction. Speculation arose regarding the likelihood of rate cuts, with a 70% probability of a 25-bp cut at the upcoming FOMC meeting on September 18. Analysts and experts weighed in on the potential impact of these cuts on asset prices, with sentiments leaning towards a smaller cut being more favorable for risk assets.
Despite the overall market downturn, data suggests that bearish pressure on Bitcoin remains relatively low. This indicates that the current downward momentum may be driven by modest selling pressure rather than a significant bearish sentiment. The failure of Bitcoin to sustain levels above $54,000 post the US jobs report highlighted volatility in the crypto market, while the prospect of a central bank rate cut added an element of uncertainty, prompting market participants to closely monitor the Fed’s next move.
As altcoins mirrored Bitcoin’s decline and breached key resistance levels, the broader crypto market retreated. Analysts suggest that the bearish pressure may not be as severe as initially perceived, hinting at a potential stabilization in the near future.
