**Bitcoin Dips Amid Economic Uncertainty**
Bitcoin (BTC) saw a 4.1% drop early on Sept. 30, retesting the $63,500 support level and wiping out gains from the past five days. Despite a brief attempt to break $66,000, the correction resulted in under $40 million in leveraged long futures being liquidated, indicating bulls were prepared.
The U.S. economic outlook remains uncertain, with stock market futures slipping 0.20% ahead of Federal Reserve Chair Jerome Powellâs comments. Concerns about the labor market and upcoming jobs report are adding pressure on BTC. Analysts suggest a slowdown in the S&P 500 could negatively impact Bitcoin, with some pointing to a potential AI sector bubble as a trigger for market panic.
In Europe, economic conditions are worsening, with automaker Stellantis lowering its margin outlook and Germany facing potential zero or negative growth in 2024. Escalating Middle East tensions and rising oil prices could further strain the global economy, limiting central banks' ability to cut interest rates.
Bitcoinâs struggle to maintain bullish momentum is largely due to these socio-economic factors, leading traders to seek safer investments in the near term.
