Leading cryptocurrencies took a tumble on Thursday, with Bitcoin and Ethereum dropping by over 3% each. The downturn came amidst concerns about the economy’s health, fueled by a disappointing private sector jobs report.
The report revealed that U.S. private employers added only 99,000 jobs in August, falling significantly short of the anticipated 140,000 additions. This figure marked a decline from the downwardly revised 111,000 jobs added in July.
The underwhelming jobs data dampened investor risk appetite, leading to a decline in cryptocurrency values. The total cryptocurrency liquidations over the past 24 hours surpassed $95 million, with $72 million stemming from bullish leveraged bets being wiped out.
Bitcoin’s price dipped to an intraday low of $55,870 before recovering to around $56,500 by late afternoon. Ethereum also saw choppy trading, falling below $2,400 after breaching the level a day earlier. The global cryptocurrency market cap fell below $2 trillion, contracting by 2.90% in the past 24 hours.
Market analysts are now looking ahead to Friday’s official jobs report from the Bureau of Labor Statistics, hoping for a clearer picture of the economy’s health. This report is anticipated to provide valuable insights into the potential trajectory of the crypto market.
Meanwhile, prominent cryptocurrency analyst Peter Brandt observed an “inverted expanding triangle” on Bitcoin’s price chart, suggesting that selling pressure was outweighing buying interest.
“A massive thrust into new ATHs is required to get this bull market back on track,” Brandt stated on Twitter.
Another respected analyst, Michaël van de Poppe, noted a reversal in the altcoin market and projected a 2-3x bull run in the coming months against Bitcoin’s value.
The cryptocurrency market remains volatile and susceptible to economic developments. Investors are closely monitoring the latest economic indicators and analyst commentary to gauge the future direction of the digital asset space.
