Bitcoin drops below $60,000 as recession fears escalate
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Key Takeaways US job market downturn and high unemployment rate trigger Bitcoin’s fall to $60,000. Bitcoin’s MVRV ratio suggests it is undervalued, hinting at a potential market rebound. The price of bitcoin (BTC) fell below $60,000 on Saturday amid growing fears that the US could be sliding into recession, according to data from TradingView. The recent price decline followed a rough Friday marked by a weaker-than-expected US jobs report and major crypto transfers by crypto lender Genesis, as reported by Crypto Briefing. Data from the Labor Department showed that the US economy added 114,000 jobs in July 2024, considerably lower than the estimated 175,000. The unemployment rate also unexpectedly rose to 4.3%, its highest level since October 2021. These figures fueled anxieties about the health of the US economy, especially following the Federal Reserve’s (Fed) decision to maintain interest rates at 5.25% to 5.5% on Wednesday. Fed Chair Jerome Powell hinted that a rate cut might be considered in September if economic indicators show improvement. However, economists are worried that the US economy is weaker than the Fed has realized. The current economic slowdown might prompt an earlier rate reduction to boost demand. The cooling job market and rising unemployment rate triggered a sell-off across global stock markets. Major indexes like the Dow Jones Industrial Average and S&P 500 plummeted in early trading on Friday. Bitcoin, which started the week near $70,000, tumbled below $62,000 on Friday and extended its slide over the weekend, TradingView’s data shows. The flagship crypto is currently hovering around $60,000, down over 11% in a week. As losses mounted, investor sentiment turned bearish. According to data from Alternative.me, the Crypto Fear and Greed index fell to 37, shifting from “greed” to “fear” for the first time in three weeks. Source: Alternative.me Bitcoin poised for a…
Filed under: News - @ August 3, 2024 8:16 pm