Bitcoin’s price has dropped below the $70,000 mark, driven by mixed signals from the U.S. jobs report and a rate cut by the European Central Bank (ECB). The cryptocurrency market experienced significant volatility, leading to substantial liquidations and a broader market downturn.
Key Takeaways
- Bitcoin’s price fell below $70,000, reaching a low of $68,450.
- The U.S. jobs report showed strong job growth but also an increase in the unemployment rate to 4%.
- The ECB cut its benchmark lending rate from 4% to 3.75%, the first reduction in five years.
- The selloff led to $450 million in liquidations across the cryptocurrency market.
- Institutional inflows into U.S. spot Bitcoin ETFs recorded over $1.54 billion in net inflows this week.
Bitcoin Price Tumbles Amid Mixed U.S. Jobs Data
Bitcoin’s price experienced a sharp decline, falling to $69,000, down 2.5% over the past 24 hours. The broader cryptocurrency market also saw significant losses, with the CoinDesk 20 Index down 5% during the same period. Ether (ETH) dropped by 4%, Tezos (XTX) and EOS (EXOS) by 10%, and Solana (SOL) by 7%.
The U.S. jobs report for May revealed that 272,000 jobs were added, surpassing expectations. However, the unemployment rate also increased slightly from 3.9% to 4%, presenting mixed signals about the economy’s health. This data seemingly dashed hopes for an imminent interest rate cut by the Federal Reserve, sending interest rates and the dollar sharply higher.
ECB Rate Cut Adds to Market Volatility
The European Central Bank’s decision to lower its benchmark lending rate from 4% to 3.75% added to the market’s volatility. This move, the first reduction in five years, is expected to boost liquidity and the appeal of alternative assets such as Bitcoin. Despite this, Bitcoin’s price continued to struggle, trading at $69,159 at 4:30 p.m. ET.
Significant Liquidations and Market Reactions
The selloff in the cryptocurrency market led to $450 million in liquidations, the largest amount since a mid-April washout. Bitcoin’s price had challenged $72,000 earlier in the day but began to decline following the release of the U.S. jobs report. The selloff intensified as the day progressed, with other cryptocurrencies also experiencing significant losses.
Institutional Inflows and Future Outlook
Despite the market downturn, institutional inflows into U.S. spot Bitcoin ETFs have been strong, recording over $1.54 billion in net inflows this week. This marks the largest accumulation streak since the launch of these ETFs. Over an 18-day streak, the ETFs accumulated more than 56,000 bitcoins, nearly seven times the amount of bitcoin mined during that period.
Looking ahead, analysts suggest that future central bank announcements and economic reports will be crucial in determining the market’s direction. A weaker employment report or lower inflation could potentially boost Bitcoin to new highs. However, the current mixed economic signals and market volatility make the short-term outlook uncertain.
Sources
- Bitcoin Price (BTC) Tumbles to $69K, Leads to $450M in Liquidations, CoinDesk.
- BTC price dips 1.8% as Bitcoin tackles ‘schizophrenic’ new US jobs data, Cointelegraph.
- Why the Bitcoin Price is Down Today?, Coinpedia.
- Bitcoin falls below US$70,000 after US jobs data and ECB rate cut, Yahoo Finance.
- Bitcoin Dips Below $70K, Reaches $68,450 Low, $86M in BTC Longs Liquidated – Markets and Prices Bitcoin News, Bitcoin.com News.
