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The price of bitcoin has dropped to around $50,000 per bitcoin, with the combined cryptocurrency market plunging below the $2 trillion mark as fears swirl that the US dollar is “on the brink of a total collapse.”
Now, after Coinbase CEO revealed an AI game-changer last week, bitcoin and cryptocurrency market sentiment has shifted to “extreme fear” as the market digests the latest US jobs data that missed expectations, sending bitcoin price below a key resistance level.
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Bitcoin price falls below key resistance level as cryptocurrency market crashes below $2 … (+)
“A key technical support level for bitcoin price remains just above $54,000, but a slip in the event of a spike in volatility could see the price briefly drop below $53,000,” Alex Kuptsikevich, senior market analyst at FxPro, said in emailed comments.
Earlier this week, legendary bitcoin trader Arthur Hayes and analysts at Bitfinex predicted that the price of bitcoin could fall further in the near term.
The Cryptocurrency Fear and Greed Index, a measure of cryptocurrency market sentiment, fell to a one-month low of 22, a sign of “extreme fear” and a level last seen during the market crash in August.
Bitcoin’s price fell to just over $52,000 before rebounding back above $53,000. The rest of the top 10 cryptocurrencies have collapsed alongside Bitcoin’s price, with Ethereum, BNB, Solana, XRP, and Dogecoin each losing between 5% and 10% over the past 24 hours.
The drop in bitcoin’s price comes as U.S. employment data showed the economy added 142,000 new jobs in August, below economists’ forecast of around 161,000.
The slowdown in the jobs market has fueled fears that the Federal Reserve waited too long to cut interest rates, risking tipping the economy into recession.
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The price of bitcoin has collapsed from its all-time high of over $70,000 per bitcoin set in March, … (+)
However, others believe the Fed’s impending rate cut — which is widely expected to trigger a rate-cutting cycle — could be a bullish catalyst for bitcoin’s price and the broader cryptocurrency market.
“The recent U.S. labor market results have acted as a moment of truth for risk assets like bitcoin, as the labor market is seen as the key sector likely to influence the Fed’s decision to cut rates this month,” Leena ElDeeb, research analyst at 21Shares, said in emailed comments.
“With the unemployment rate slightly improving, investors traded positively, anticipating a looser monetary policy on September 18. A rate cut bodes well for risk assets that have historically benefited from expanding investor appetite as borrowing costs decline. If a hard economic landing is avoided, bitcoin and the broader market could see appreciation in the fourth quarter, supported by this liquidity dynamic.”
