He Bitcoin Price On September 6, the price of the flagship cryptocurrency fell below $54,000 as it suffered a massive wave of selling by traders. This price drop was triggered by the events in the macroeconomic sidewhich painted a bearish outlook for Bitcoin.
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Bitcoin falls after a weak employment report
Bitcoin Price fell back after a weak August jobs report. Data from the U.S. Bureau of Labor Statistics showed that unemployment rate The unemployment rate fell to 4.2%, while the labor market added 142,000 nonfarm jobs. While the unemployment rate was in line with expectations, job gains were lower than the 164,000 expected, initially estimated by market experts.
This further casts doubt on Bitcoin’s trajectory, considering how fragile it is. US Economy The current outlook is a risk-on for risk assets such as the flagship cryptocurrency. The bearish outlook for Bitcoin was reinforced by revisions to the July and June employment reports, which showed the US added fewer jobs than initially reported in those months.
Bitcoin had previously had an unpleasant start to September, which is historically very bearish for the leading cryptocurrency. NewsBTC reported that Bitcoin had suffered a price drop earlier in the week as markets were still feeling the effects of the Yen carry trade and following significant volatility in the US stock market, with more than $1.05 million lost on September 3.
Macroeconomic factors remain primarily responsible for the recent fall in the price of Bitcoin and the cryptocurrency market in general, especially with a rate cut by the US Federal Reserve still in play. It is worth mentioning that July’s employment reports (the lowest number of jobs in the past two years) and the yen carry trade were responsible for the fall in the price of Bitcoin. Market crash on August 5thcausing Bitcoin to fall below $50,000.
Interestingly, Arthur Hayes, co-founder of cryptocurrency exchange BitMEX, fixed who expects Bitcoin to fall below $50,000 this weekend, revealing that he had opened a short position.
A rate cut seems increasingly unlikely
For some time now, the cryptocurrency market has been anticipating that the Fed will cut interest rates at its next meeting. FOMC Meetingwhich will be held between 17 and 18 September. Bernstein analysts provided that this move would provide some sort of bullish momentum to the Bitcoin price. However, a rate cut, especially of 50 basis points (bps), is now unlikely after the release of the employment data.
Cryptocurrency Commentator Kobeissi’s letter Highlighted with an X (formerly Twitter) mail The odds of a 50 basis point cut have fallen to 23% in forecast markets. The Fed may not be in a hurry to cut rates as the situation in the labor market is not as bad as initially feared after the release of the July jobs report.
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Whatever happens, cryptocurrency analysts like CryptoCon are confident that the worst is almost over for Bitcoin. CryptoCon recently noticed that Bitcoin was mirroring its price action from the 2016 market cycle and suggested that the flagship cryptocurrency was preparing for its next bullish leg, which would take it to a new high. All-time high (ATH).
At the time of writing, Bitcoin is trading around $54,150, down nearly 4% over the past 24 hours, according to data from CoinMarketCap.
Featured image from EastMojo, chart from TradingView
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