Bitcoin fell below $54,000 per coin, the lowest level since early August, and is down about 4% on the day.
The Reason for the Decline is Risk Aversion in the US After Nonfarm Payrolls Data
A brief rally in the markets quickly reversed, leading to volatile trading and widespread losses in major cryptocurrencies.
Bitcoin (BTC), the largest cryptocurrency by market cap, rose to as high as $57,000 earlier today in response to important economic data. However, the gains were short-lived as BTC quickly erased its rally and fell below $54,000. As of the latest trading data, Bitcoin has lost about 4% in the past 24 hours.
The sell-off went beyond Bitcoin, with major altcoins like Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cardano (ADA) losing between 3% and 5% during the same period.
The sudden price swings triggered the liquidation of nearly $50 million in crypto derivatives markets in a single hour, according to CoinGlass data. The volatility caught leveraged traders, especially long holders who had invested in a sustained price rally, off guard.
The turmoil in crypto markets coincided with declines in major U.S. stock indexes. The Nasdaq Composite Index fell 1.9%, while the S&P 500 fell 1.15% shortly after the opening bell, reflecting broader risk-off sentiment in financial markets.
*This is not investment advice.
