Bitcoin fell below $54,000 after weak US jobs data heightened fears of economic instability and speculation of a larger Federal Reserve interest rate cut. August's job report showed only 99,000 new jobs, far below the expected 144,000, signaling potential economic slowdown.
This prompted concerns about a possible recession, with markets now considering a more aggressive rate cut. While the Fed is expected to lower rates by 0.25% in September, some analysts believe a 0.5% cut might be needed, though such a move could trigger further market panic. Bitcoin and Ethereum both saw declines of 4.4% and 5.8%, respectively.
