Bitcoin Falls Below $54K As US Jobs Data Weakned
Bitcoin dropped below $54,000 on September 6, 2024, after rising to $57,000 after US nonfarm payrolls. August employment growth was disappointing at 142,000, causing crypto market volatility.
Crypto ecosystem plummeted after the unexpected U-turn. Bitcoin fell 4% to $54,101 in 24 hours from $53,780. After the disappointing employment report, there was speculation about a 70% chance of a 25-basis-point Fed rate decrease at the September 18 FOMC meeting.
The liquidation wasn't limited to bitcoin. Ether fell 4.6% to $2,261 in 24 hours.
Wild price volatility caused significant crypto market liquidations. Some accounts say $93 million was sold in four hours. These liquidations were mostly leveraged longs that surprised traders anticipating a gain.
The weak employment report has spurred interest rate speculation. Investors predict a 70% likelihood of a 25-bp rate drop at the September 18 FOMC meeting.
“Ultimately, the nature of the cut – whether bullish or bearish – depends on economic data and Fed commentary, but all things being equal I still view 25 bps as better for asset prices than 50 bps,” Fundstrat digital asset research head Sean Farrell said.
A lesser drop would be better for risk assets, since a 50bp cut might indicate the Fed is anxious about a US recession. The decrease will depend on economic statistics and Fed rhetoric.
Although the market is down, Bitcoin negative pressure is mild, according to statistics. This suggests unaggressive selling is driving negative momentum.
Bitcoin failed to maintain over $54,000 following the US employment data, highlighting cryptocurrency market volatility. A likely central bank rate decrease heightened uncertainty and made market players watch the Fed's next move.
With the crypto market falling, altcoins have dropped below their major resistance levels like all other cryptocurrencies. According to experts, bearish pressure may not be as severe as it seems.
