- Bitcoin falls below $83,000: The cryptocurrency experienced a 7.32% drop in the past 24 hours amid macroeconomic pressures.
- US jobs data impact: Stronger-than-expected employment figures suggest persistent inflation, lowering the odds of a December rate cut.
- Market sentiment: The Crypto Fear & Greed Index hits ‘extreme fear,’ with the overall crypto market down 6.62%.
Bitcoin has tumbled below $83,000, extending its decline from an all-time high of $126,080 in October, as delayed US jobs data for September revealed stronger-than-expected employment growth. The report showed 119,000 non-farm payroll additions, surpassing the consensus estimate of 50,000, fueling concerns over inflation and prompting a reassessment of Federal Reserve policy. This development has placed downward pressure on risk assets, including cryptocurrencies.
Rate cut expectations fade. The CME Group’s FedWatch Tool now indicates only a 35.4% chance of a 25 basis point rate cut next month. Analysts note that thin liquidity and short-term profit-taking have amplified the price movement, contributing to a 32% pullback from recent highs.
In a related event, Bitcoin suffered a flash crash on the Hyperliquid perpetual futures exchange, dropping from $83,307 to $80,255 in one minute before rebounding. This isolated incident liquidated over $86 million in positions, but highlights heightened volatility across platforms.
ETF outflows accelerate. BlackRock’s iShares Bitcoin Trust (IBIT) recorded a record single-day outflow of $523 million, part of over $1.4 billion lost across five days. Other funds like Fidelity’s FBTC and Grayscale’s GBTC also saw significant withdrawals, reflecting investor caution amid the slump.
Technical indicators point to bearish momentum, with Bitcoin entering a ‘death cross’ as the 50-day EMA crossed below the 200-day EMA. The RSI at 27.12 suggests oversold conditions, potentially setting the stage for capitulation.
“BTC slipping below $83K comes as stronger-than-expected US jobs data dampens expectations for a December rate cut,” said Vincent Liu, CIO at Kronos Research. “Liquidity remains thin, and short-term profit-taking is amplifying the move.” Liu added that a sustained rally would require fresh capital inflows and renewed on-chain demand beyond any rate adjustments.
Broader market implications. The crypto market cap shed $120 billion in 24 hours, with Ethereum also approaching a death cross. While some view this as a healthy repricing of overextended positions, risks include further sell-offs if macroeconomic uncertainties persist.
For context on cryptocurrencies like Bitcoin and Ethereum, refer to pricing data from Cryptopress.site. A related article on market volatility can be found here.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
