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Bitcoin lost the strong upward momentum it gained in the middle of the week following the release of weak US employment data today.
Rising uncertainty in the markets has increased selling pressure on risky assets, with the largest cryptocurrency experiencing a significant drop in value in recent days.
Bitcoin has fallen by approximately 7% since Wednesday, dropping to around $68,000. Data indicates that the decline accelerated following a weaker-than-expected US employment report, which reduced risk appetite in both traditional financial markets and digital assets.
Boris Alergant, head of strategic initiatives at Babylon, stated that the employment data triggered general selling pressure in the markets. Alergant said, “The employment data affected all risky assets. During these kinds of selling periods, the correlation between assets increases, and most assets move downwards simultaneously.”
The pullback in Bitcoin is seen as part of a months-long downtrend in the crypto market. Many investors in the sector believed that US President Donald Trump’s crypto-friendly policies would support the market. Despite this, Bitcoin has fallen approximately 46% from its all-time high of $126,000 reached in October.
Today’s employment report further increased pressure on the markets. The rise in the unemployment rate and the larger-than-expected job losses led investors to avoid risk. In addition, the escalating tensions in the Middle East are another factor increasing uncertainty in global markets. The tension, which President Trump described as a “conflict without a time limit,” has driven up energy prices and heightened investor concerns.
In line with the decline in Bitcoin, a similar picture was observed in US stock markets. Major indices, which had risen in the middle of the week, fell after the employment data was released. The S&P 500 index experienced a drop of approximately 2% after the data was announced.
Some analysts are warning that the decline may not be over yet. B2Prime’s chief strategy officer, Alex Tsepaev, said that if the week closes with the current outlook, it will not be a positive signal for the market. According to Tsepaev, in this case, the Bitcoin price could fall further and retest the $60,000 level.
Significant Liquidation Occurred in Bitcoin Amidst Declines
The drop in Bitcoin’s price has led to a significant liquidation in the cryptocurrency market. In the last 24 hours, a total of $328 million in long positions and $71 million in short positions have been liquidated.
On the Bitcoin side, $46.73 million worth of long positions and $51.55 million worth of short positions were liquidated in the last 24 hours.
*This is not investment advice.