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Why is Bitcoin falling? $55,280 was seen

Bitcoin fell below $56,000 on Friday, when markets focused on two data to be announced in the US. With Bitcoin falling to $55,280, the 30-year US bond yield also fell. This situation shows that the market is avoiding risky assets.

Non-farm employment and unemployment data will be announced in the US today. The fall in the markets hours before these two data, which are expected to have a direct impact on the Fed's interest rate decision, does not go unnoticed. The Bitcoin price fell to $55,280. At the same time, it seems that interest in bonds, which are seen as safe havens, has also increased.

Will the data not come as the markets expect?

As is known, markets can sometimes pre-price before some critical data announcements. Therefore, this decline may be a sign that non-farm employment and unemployment data will not come as expected, and will not be low enough to create fear. Therefore, the possibility of the Fed increasing interest rates by 25 basis points instead of 50 on September 18 may increase. This may of course have caused a decrease in prices.

Bonds appreciated, yields dropped to range levels

While Bitcoin and other risky assets experienced declines, there was also an increase in US 30-year Treasury bonds. The yield on the 30-year US Treasury bond fell by 2.5 basis points to 3.994%. This rate was last seen in December 2023.

The decrease in bond yields indicates that bond prices are increasing and markets are fleeing to safe havens. It is known that such situations are more common in countries where there is economic uncertainty and fears of recession.