Bitcoin and other cryptocurrencies have plummeted following a grave warning from Goldman Sachs, including the top ten coins, ethereum, BNB, solana, XRP, and dogecoin.
The price of bitcoin has fallen to almost $50,000, and the entire cryptocurrency market has plunged below $2 trillion due to concerns that the US dollar is “on the verge of a total collapse.”
Now, as the market processes the most recent U.S. jobs data that fell short of expectations, the sentiment surrounding bitcoin and the cryptocurrency market has shifted to “extreme fear” following Coinbase CEO’s revelation last week of an AI game-changer. This has caused the price of bitcoin to drop below a crucial resistance level.
According to Alex Kuptsikevich, senior market analyst at FxPro, in an email, there is still a significant technical support level for the price of bitcoin just above $54,000, but slippage in the case of a spike in volatility could cause the price to momentarily fall below $53,000.
Renowned bitcoin trader Arthur Hayes and Bitfinex analysts forecast earlier this week that the price of bitcoin may drop significantly more quickly.
A gauge of sentiment in the cryptocurrency market, the Crypto Fear & Greed Index, has dropped to a one-month low of 22, which indicates “extreme fear” and is a level last observed during the market meltdown in August.
Before rising above $53,000 once more, the price of bitcoin dropped to just over $52,000. Along with the price of bitcoin, the other ten most popular cryptocurrencies have also plummeted, with ethereum, BNB, solana, XRP, and dogecoin all dropping between 5% and 10% in the past day.
The US economy created 142,000 new jobs in August, below economists’ estimates of 161,000. This news coincides with the collapse of the price of bitcoin.
The Federal Reserve may have waited too long to lower interest rates, raising concerns that the economy could enter a recession as a result of the slowing jobs market.
Some, however, believe that the impending Fed interest rate cut—which is widely anticipated to start a cycle of rate reductions—might act as a bullish catalyst for the price of bitcoin and the larger cryptocurrency market.
The labor market is thought to be the primary factor influencing the Fed’s decision to lower rates this month, according to Leena ElDeeb, research analyst at 21Shares, who stated in an email that the recent results of the U.S. labor market served as a moment of truth for risk-on assets like bitcoin.
Some, however, believe that the impending Fed interest rate cut—which is widely anticipated to start a cycle of rate reductions—might act as a bullish catalyst for the price of bitcoin and the larger cryptocurrency market.
The labor market is thought to be the primary factor influencing the Fed’s decision to lower rates this month, according to Leena ElDeeb, research analyst at 21Shares, who stated in an email that the recent results of the U.S. labor market served as a moment of truth for risk-on assets like bitcoin.
