Bitcoin and other crypto assets recorded significant losses as the US job data fell below expectations after Friday’s release. The US non-farm payroll (NFP) rose by 147,000 in August, against its expected range of 160,000. Moreover, global markets tremble this week at a potential increase in US inflation data.
Consequently, investor sentiment is bearish, with Bitcoin and Ethereum slipping below their critical price levels during the weekend.
US NFP Data Decline Below Estimates, Sending Bitcoin And Ether To The South
The crypto market reacted to the release of the US NFP data on Friday, September 6, which fell below its expected value. The latest data indicated that the US NFP surged by 142,000 in August, which is against the estimated 160,000. Also, the unemployment rate saw a slight decline to 4.2% from its previous value of 4.3%.
Notably, the US NFP data is a key indicator that reflects the country’s employment, inflation, and overall economic health. So, the latest underwhelming job data sparked concerns about a potential weakening of the US economy.
Consequently, Bitcoin and Ethereum dropped beyond their critical price levels following the release of the data. Surprisingly, BTC dipped to $52,598 on Friday, hitting its lowest mark since August 5.
Similarly, Ethereum followed the same trend as Ether nosedived to a daily low of $2,150 on Friday, representing an over 4% decline. Other crypto assets were not left out in the downward trend; BNB dropped to $473, while Solana (SOL) decreased to $121. Meanwhile, Dogecoin (DOGE) plummeted by 5% to $0.99, and Shiba Inu (SHIB) dropped by over 4% to hit $0.52.
What’s Next For The Crypto Market?
On a brighter note, Metapha’s senior analyst, Lucy Hu, thinks the low unemployment figure offers a glimpse of hope. “The lower unemployment figure has lessened the concerns of imminent recession,” she said.
However, Hu noted that the crypto market reacted more negatively to the NFP data than the equity markets. This means crypto could face more turbulence and increased volatility till the FOMC’s upcoming meeting between September 17 and 18.
SOFA.org’s Head of Insights, Augustine Fan, also reacted to the impact of the US NFP data on crypto.
Fan said: “Crypto would need a near-perfect mix of NFP outcomes to see higher prices. Instead, we received one of the worst-case outcomes as the repricing risk sentiment dragged BTC and ETH down.“
Also, Fan noted that the data suggested that the US private sector has witnessed a growth lag within the past decade. So, he believes the country could face a more harsh economic recession than expected.
A fan mentioned that the coming week could offer a more risk-reduction impact on crypto without a possible positive trigger for a price rally. He pointed out key US events, including global central bank talks and deliberations on inflation data.
Also, the US Presidential candidates Kamala Harris and Donald Trump will hold their first televised debate this week. Trump has reflected a pro-crypto stance, attracting the attention of many crypto participants in the upcoming November election.
The upcoming presidential debate and inflation data could enliven investors’ bullish sentiment. However, uncertainty still looms in the market.
Bitcoin trades at $55,718. It recorded a 2.52% surge over the past 24 hours. Ether’s price hovers around $2,312, indicating a 1.36% increase over the past day.
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