Bitcoin Prices Plummet to One-Month Low Following Disappointing US Employment Data

Cryptonews John Brightwater September 7, 2024

Bitcoin Prices Plummet to One-Month Low Following Disappointing US Employment Data

The price of Bitcoin has experienced a significant decline, reaching its lowest level in one month following the release of US employment data. Despite a brief increase prior to the opening of Wall Street on September 6, Bitcoin’s trajectory altered unexpectedly due to disappointing job figures.

Reported data from Cointelegraph Markets Pro and TradingView indicate that Bitcoin (BTC) momentarily aimed for a price of $57,000 before retracting following the initiation of the US trading session. This decline culminated in a new low, with Bitcoin trading at $54,919 on Bitstamp.

The nonfarm payroll figures for August fell short of anticipated forecasts, magnifying existing apprehensions regarding the robustness of the labor market. Concurrently, a senior official from the Federal Reserve advocated for a policy shift aimed at reducing interest rates, with a critical decision expected on September 18. New York Fed President John Williams articulated that, “the current restrictive stance of monetary policy has been effective in restoring balance to the economy and bringing inflation down,” during a recent speech at the Council on Foreign Relations.

CME Group’s FedWatch Tool reflected that market expectations surrounding potential interest rate cuts, specifically a 25-basis-point or 50-basis-point reduction, are quite balanced, estimated at approximately 53% and 47% respectively following the employment report.

Furthermore, the strength of the US dollar witnessed an increase at the market’s open, rising by 0.3%, which resulted in Bitcoin negating its initial reaction to the macroeconomic data. In contrast, trader Daan Crypto Trades expressed a longer-term view of a persistently weaker dollar, stating, “$DXY remains very weak and is sitting on the ~101 support level,” on the social media platform X.

In examining Bitcoin’s short-term price actions, trader and analyst Rekt Capital articulated the current challenges faced by bullish investors. He noted that Bitcoin is forming a downtrending channel on the 4-hour timeframe, simultaneously developing a Bullish Divergence. Accompanying analyses illustrated the relative strength index (RSI) values increasing while the price decreases over this period.

Furthermore, Rekt Capital highlighted the importance of 4-hour candle bodies exceeding resistance levels, positing that such movements are crucial to confirm any prospective trend shifts.

In conclusion, market conditions showcase a complex landscape for Bitcoin investors, influenced by recent employment data, Federal Reserve statements, and fluctuations in dollar strength. Stakeholders are encouraged to conduct thorough research and consider risk factors when navigating the cryptocurrency market, as this discourse does not include specific investment recommendations.