Bitcoin dropped below $54,000 as uncertainty surrounding potential rate cuts fueled increased market volatility.
Bitcoin tumbled below $54,000 on Friday after briefly surging to $57,000 earlier in the day, following the release of a key US jobs report.
The rapid downturn caused significant ripples across the crypto market, with BTC losing nearly 4% in 24 hours amid heightened volatility.
At press time, Bitcoin was trading at $54,100 after hitting a low of $53,780, without establishing a firm local bottom, according to CryptoSlate data.
The US jobs report revealed that 142,000 jobs were added in August, which analysts suggest may pave the way for a potential 25-basis-point rate cut by the Federal Reserve. However, uncertainty about future economic conditions and interest rates seemed to exacerbate market turbulence.
Wider Market Declines The selloff extended across the crypto market, with major altcoins experiencing similar drops. Ethereum was down 4.6% in the past 24 hours, trading at $2,261.8 at press time.
BNB and Solana (SOL) faced milder losses, each declining about 2%, trading at $490.3 and $127.6, respectively.
XRP and Dogecoin (DOGE) saw steeper declines, falling over 4% in the last 24 hours. XRP traded at $0.5237 and DOGE at $0.09271 at press time. TRON had a smaller decline of 1.47%, priced at $0.1481.
Meanwhile, Toncoin defied the trend, rising 2.4% to $4.75, following a steep drop earlier in the month after Telegram founder Pavel Durov’s arrest in France.
US equities mirrored the crypto market’s struggles, with the Nasdaq Composite Index down 1.9% and the S&P 500 slipping 1.15%.
Liquidations Surge Bitcoin led liquidations, with $52.25 million in leveraged positions wiped out as its price fell below $54,000, according to Coinglass data.
Long positions were hit hardest, with $46.4 million liquidated as traders betting on Bitcoin’s continued rise were caught off guard by the sudden reversal. This spurred a wave of forced selling across other assets.
Ethereum saw $15.46 million in liquidated positions as its price fell by 4.62%. Major tokens like Solana and XRP also posted liquidations in the millions.
Overall, the crypto market saw over $100 million in liquidations within a brief period of volatility, with most liquidations affecting long positions, contributing to sharp price drops.
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