Bitcoin Price Plunges After U.S. Employment Report: Predictions of "Below $50,000" Emerge

Bitcoin saw a sharp price decline after the release of U.S. employment data, dropping to $52,500. While market forecasts fell short in job growth, the unemployment rate improved.

BitMEX’s Arthur Hayes predicts Bitcoin may dip below $50,000 soon, but he remains optimistic for long-term gains, even suggesting BTC could reach $1 million by 2025.

Bitcoin Drops to $52,500 Following U.S. Employment Data

Bitcoin (BTC) saw a sharp decline between September 6 and 7, 2024, briefly dropping to around $52,500. The U.S. employment report was released on September 6 at 9:30 PM (EST), and Bitcoin’s price began to fall around 10 PM.

This suggests that the sharp decline was likely influenced by the results of the employment data.

According to the U.S. Department of Labor’s August employment report, the number of non-farm payroll jobs, a key indicator of economic trends, increased by 142,000 from the previous month.

However, this figure fell short of market expectations, which had forecast a 164,000 job increase. The unemployment rate, as expected, improved to 4.2%, marking its best figure in five months.

The lower-than-expected job growth led to views that the economy might be weaker than anticipated.

At the same time, since the unemployment rate was in line with predictions, it was also speculated that the Federal Reserve (FRB) might be unlikely to make substantial interest rate cuts.

Typically, when interest rates fall, investors tend to move funds into higher-risk assets, which often causes cryptocurrency prices to rise.

Although Bitcoin's price initially saw a slight uptick following the release of the employment data, it subsequently fell to $52,500. A minor rebound is now observed.

BitMEX Founder Predicts Bitcoin Could Drop Below $50,000

While Bitcoin has recovered to the $53,000 range at the time of writing, some prominent figures in the cryptocurrency industry are forecasting further declines.

One such figure is Arthur Hayes, the co-founder of the major cryptocurrency exchange BitMEX. On the morning of September 6, Hayes predicted that Bitcoin’s price could fall below $50,000 by the end of the weekend.

Despite his short-term bearish outlook, Hayes remains optimistic about Bitcoin’s long-term prospects. In a previous blog post, he suggested that a significant bull market could begin in 2025, with BTC potentially reaching $1 million.

While the cryptocurrency market continues to experience declines, many analysts and traders maintain bullish long-term forecasts.

Several opinions view the current downturn as an "accumulation phase," with expectations of future price increases.

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