Bitcoin Leads Crypto Market Crash After NFP Data Misses Estimates, Ahead of Fed MeetingOn September 6th at 20:30 EST, the US Department of Labor released the highly anticipated August non-farm payroll report. The data revealed that the US's seasonally adjusted non-farm employment growth was lower than expected, sparking market expectations that the Federal Reserve might continue raising interest rates in the future
Bitcoin Leads Crypto Market Crash After NFP Data Misses Estimates, Ahead of Fed Meeting
On September 6th at 20:30 EST, the US Department of Labor released the highly anticipated August non-farm payroll report. The data revealed that the US's seasonally adjusted non-farm employment growth was lower than expected, sparking market expectations that the Federal Reserve might continue raising interest rates in the future. This initially led to a brief surge in Bitcoin (BTC), pushing it from 55,900 USDT to around 57,000 USDT. However, the good times were short-lived, as BTC began leading the crypto market into a collective decline just an hour after the data release.
According to OKX data, BTC reached a peak of 57,008 USDT on the 6th before rapidly retracing. By 23:00 EST, it fell to 53,800 USDT, marking a decline of 5.7%. ETH also suffered a similar fate, dropping from 2,400 USDT to 2,264 USDT within the same timeframe, representing a decrease of roughly 5.7%. SOL and BNB also experienced significant falls, dropping by 5.5% and 5.2% respectively, reaching 126.7 USDT and 488 USDT.
The decline in BTC dragged down the entire cryptocurrency market. CoinGecko data reveals that the total market capitalization of cryptocurrencies has reached 2.06 trillion USD, with a 24-hour drop of 4.63%.
In the derivatives trading market, Coinglass data shows that over the past 24 hours, total liquidations reached 160 million USD, with the vast majority being long positions, amounting to 124 million USD. Looking at specific assets, BTC experienced liquidations of 74.87 million USD, while ETH saw 28.62 million USD in liquidations.
Are NFP and Unemployment Data Bitcoin "Killers"?
It's important to note that not all analysts shared a pessimistic view of the market. Crypto analyst CrypNuevo tweeted on the 5th that if the NFP and unemployment data released the next day (6th) were positive, Bitcoin could surpass 60,000 USD. However, the data released and the overnight market crash dashed hopes for many market participants.
The liquidation heatmap for Bitcoin ($BTC) shows that over the past 7 days, a significant portion of liquidations occurred between 60,000 and 60,200 USD. While challenging, Bitcoin could potentially reach this price range if tomorrow's labor market data is favorable.
This is a crucial day for the market as it awaits the outcome of the next Federal Open Market Committee (FOMC) meeting.
Arthur Hayes Predicts Bitcoin to Fall Below 50,000 USD Over the Weekend
Amid this gloomy market sentiment, BitMEX co-founder Arthur Hayes took to the social media platform X today to predict that Bitcoin would fall below 50,000 USD this weekend:
"Bitcoin is heavy! My target for the weekend is below 50,000. I shamelessly shorted. Pray for my soul because I am a degen."
Furthermore, according to alternative.me data, the Crypto Fear & Greed Index reached 22, indicating "Extreme Fear," marking the lowest score since August 8th's 20. This reflects the prevailing sense of fear within the crypto market.
Summary
The release of the NFP data undeniably had a significant impact on the crypto market, leading to Bitcoin's decline and sparking market panic. However, market expectations regarding the Federal Reserve's future interest rate decisions remain a primary influencing factor. The future trajectory of the market requires close monitoring.
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