The price of Bitcoin (BTC) is on the decline, with the crypto falling below the $55,000 level in Friday’s session.
Bitcoin (BTC) Falls Today Below $55,000
According to data from Tradingview, the price of Bitcoin (BTC) dropped below $55,000 amid a rough September start.
As of 14:42 UTC today, September 6, 2024, Bitcoin fell below the $55K benchmark and traded at $54,745, plunging 3.5% over the past 24 hours.
This significant drop in the price of Bitcoin is likely related to the saddening August 2024 US jobs data released earlier today.
Bitcoin is not the only token affected by the disappointing report; the entire crypto market, typically following its master’s lead, was also affected by the economic data.
Currently, the Bitcoin Fear and Greed Index stands at 22. At this index, Bitcoin sentiment is at the same levels as when the price was $16,000.
The Fear of Recession Possibly Dragged Bitcoin and Other Cryptos Down
According to the US Department of Labor Statistics, there was a 142,000 increase in non-farm payroll employment in August. This shows a slowing labor market, which is not good for the US economy.
Also, the rate of unemployment stayed at 4.2%, with 7.1M people unemployed. This reflected a poorer condition considering last year’s rate of 3.8%, with 6.3M people unemployed.
While an improvement in the level of employment usually indicates a potential interest rate cut, which could boost risky assets like Bitcoin, the saddening report has instead sparked fears of a possible economic recession, causing the opposite.
The poor jobs data triggered a sell-off across various risky assets like stocks and crypto. The price of cryptocurrencies, which are considered risky assets, plunged in the wave of sell-off.
Prices of stocks were also affected. For instance, S&P 500 futures plunged 0.5% following the report – another worst performance following the August 5 market meltdown.
What Next?
Bitcoin traders and holders are already set for more price volatility as they await other key economic data to know if the US will hit recession or not and how the Feds might adjust its policies.
Recently, Arthur Hayes, BitMEX co-founder, predicted that the price of Bitcoin could dive deeper towards $50,000 in September due to the unfavorable activities of the Feds and US Treasury, as reported by BTCRepublic.
Arthur Hayes mentioned that Bitcoin is sensitive to changes in dollar liquidity, and if the Fed does not cut interest rates before the September 18 meeting, Bitcoin’s price may suffer.
As it is now, Bitcoin may fall beyond $50k if there is no quick intervention.
