Bitcoin Drops Below $54,000 on September 6, 2024, After Brief Surge to $57,000
On September 6, 2024, Bitcoin experienced significant volatility, falling below $54,000 after briefly reaching $57,000 earlier in the day. This shift followed the release of the U.S. nonfarm payrolls report, which showed only 142,000 jobs were added in August—far below market expectations. The disappointing figures triggered turbulence in the cryptocurrency market, leading to a sharp downturn.
Bitcoin hit a low of $53,780, marking a nearly 4% loss over the previous 24 hours, trading at around $54,101. The weak job data has spurred speculation about the Federal Reserve potentially cutting interest rates, with a 70% chance of a 25-basis point reduction at the Federal Open Market Committee (FOMC) meeting on September 18.
Altcoins Join Bitcoin in Decline
Bitcoin wasn’t the only cryptocurrency impacted. Ether dropped 4.6%, trading at $2,261, while Ripple’s XRP and DOGE also faced declines of over 4% each. These price drops echoed broader market concerns.
Market Turbulence and Liquidations
The rapid price fluctuations led to significant liquidations in the crypto market, with reports suggesting around $93 million was liquidated within a four-hour period. Much of this came from leveraged long positions, catching many traders off guard as they had been anticipating a continued rally.
Bitcoin’s current market capitalization stands at $1.07 trillion, according to TradingView data.
Fed Rate Cut Expectations
The weak jobs report has led to growing speculation about potential rate cuts from the Federal Reserve. Some investors are pricing in a 70% likelihood of a 25-basis point cut at the upcoming FOMC meeting. Sean Farrell, head of digital asset research at Fundstrat, noted that while any cut would influence asset prices, a smaller cut of 25 bps might be more favorable for risk assets than a 50 bps cut, which could signal deeper concerns about the U.S. economy.
Bitcoin’s Bearish Momentum Limited
Despite the overall market decline, data suggests that bearish pressure on Bitcoin remains relatively low, hinting that the downward movement may not be driven by aggressive selling. However, Bitcoin’s inability to maintain its position above $54,000 following the jobs report adds to the volatility in the market. With the Federal Reserve’s next move uncertain, market participants are closely watching upcoming economic data and commentary.
Altcoins also saw losses, as the broader crypto market faced retreat, but analysts suggest the current bearish trend may not be as severe as it appears.
