The price of Bitcoin, along with other cryptocurrencies, sank on Friday and remained in the red on Saturday after earlier posting some gains on the back of disappointing US jobs data, Bloomberg reports.
The oldest cryptocurrency rose as much as 1.6 percent after August data showed U.S. employment rose less than expected in August, but as unemployment fell to 4.2 percent, a structured slowdown in the labor market continued.
But about an hour later, trading was already in the red, with the coin hitting $53,555, its lowest since August 5. On Saturday, minutes before 11 a.m. Bulgarian time, there was a slight correction to $54,213, which is a drop of 2.8% for the day.
Ether, for its part, erased 2.5% to $2,285, after dropping almost 6% earlier.
This brought declines in industry-related stocks as well. Crypto exchange Coinbase’s ledger ended its worst week of the year, falling more than 7.7% in after-market trading to more than 15% for the year. Those of the Marathon Digital miner, on the other hand, erased more than 3% of their price on Friday.
Nonfarm payrolls rose by 142,000 last month after the July data was revised down by the Labor Department’s Bureau of Labor Statistics to 89,000. Economists polled by Bloomberg had expected 165,000.
The results also affected the main US stock indexes. The broad gauge S&P 500 fell on Friday and recorded its worst week since March 2023.
At the same time, they are shrinking the chances of a reduction in interest rates at the September meeting of the leadership of the Federal Reserve. “I think expectations for a 50 basis point cut in September have become too high and I think it is very unlikely to happen.” Friday’s mixed, or in other words, not clearly bad, employment data reduced the likelihood of a 50 basis point cut. And risk assets – stocks, cryptocurrencies – are down because of this,” commented Cosmo Dzian, portfolio manager of Pantera Capital.
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