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the Bitcoin price The leading cryptocurrency dropped below $54,000 on September 6 as it witnessed a massive sell-off by traders. This price drop led to developments in Macroeconomic aspectwhich drew bearish expectations for Bitcoin.
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Bitcoin Price Drops After Weak Jobs Report
Bitcoin price Oil prices fell after a weak August jobs report. Data Data from the US Bureau of Labor showed that Unemployment rate Unemployment fell to 4.2% while the labor market added 142,000 nonfarm jobs. While the unemployment rate was in line with expectations, the new jobs came in below the 164,000 jobs expected by market experts initially.
This raises further doubts about Bitcoin’s trajectory, given how fragile it is. US economy The current outlook for the digital currency poses a threat to riskier assets such as the leading cryptocurrency. The bearish outlook for Bitcoin was reinforced by revisions to the July and June jobs reports, which showed that the United States added fewer jobs than initially reported in those months.
Earlier, Bitcoin had a rough start to September, which is historically very bearish for the leading cryptocurrency. NewsBTC Reported Bitcoin suffered a price crash earlier in the week as markets continued to feel the effects of yen trading After the huge fluctuations in the US stock market, the company lost more than $1.05 million on September 3.
Macroeconomic factors remain primarily responsible for the recent bearish moves in Bitcoin and the broader cryptocurrency market, especially with the US Federal Reserve cutting interest rates. It is worth noting that July’s jobs report (the lowest job additions in the past two years) and the yen trade were responsible for the lower interest rates. Market crash on August 5causing the price of Bitcoin to drop below $50,000.
Interestingly, Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, Stated He expects Bitcoin to drop below $50,000 this week, and revealed that he has opened a short position.
Interest rate cuts look less likely
For some time now, the cryptocurrency market has been anticipating that the Federal Reserve will cut interest rates at its next meeting. Federal Open Market Committee Meetingwhich will be held on September 17-18. Bernstein analysts expected This move is expected to provide some form of upward momentum to Bitcoin’s price. However, a rate cut, especially by 50 basis points, is now unlikely after the jobs data release.
Cryptocurrency commentator Al Qubaisi’s message Marked with an X (formerly Twitter) mail The odds of a 50 basis point rate cut have fallen to 23% in the forecast markets. The Fed may no longer be in a rush to cut rates because the labor market is not as bad as initially feared after the July jobs report.
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Whatever happens, cryptocurrency analysts like CryptoCon are confident that the worst is over for Bitcoin. Recently noticed Bitcoin was reversing its price action from the 2016 market cycle and indicated that the leading cryptocurrency was preparing for its next bullish phase, which would take it to a new level. All Time High (ATH).
At the time of writing, Bitcoin is trading at around $54,150, down about 4% in the past 24 hours, according to Data From CoinMarketCap.
Featured image by EastMojo, chart by TradingView