According to CoinGlass data, the crypto market encountered a significant price fluctuation that resulted in the liquidation of over $50 million worth of leveraged derivatives contracts across all crypto within one hour.
Following the release of the US jobs report on Friday, the rise swiftly reversed, causing Bitcoin (BTC), the biggest crypto, to reach its lowest point in a month. This means BTC dropped below $54k. The sudden price fluctuation took leveraged traders by surprise, particularly those who had placed bets on a continuous price increase.
The difference of over $3,000 between the highest and lowest points of the day was the largest since August 28th. The Nasdaq Composite Index declined by 2.5% and the S&P 500 Index dropped by 1.6% during their early trading sessions.
The US nonfarm payrolls report revealed that the greatest economy in the world gained 142,000 jobs in August, somewhat below what analysts had predicted.
Additionally, the unemployment rate decreased from 4.3% in July to 4.2%. Market analysts are evaluating the Federal Reserve’s anticipated plan to decrease interest rates, which is projected to occur later this month.
Some analysts think that a reduction of a lesser magnitude would be more advantageous for assets with risk exposure, as a 50 basis points decrease could indicate that the Federal Reserve is growing more apprehensive about the possibility of the US economy entering a recession.
