Bitcoin experienced a significant drop on Thursday, reaching levels not seen in over six months. The flagship digital currency fell to a low of $86,325.81, marking its lowest point since April 21, before settling at $86,690.11. This decline reflects a broader trend of investors reducing exposure to riskier assets, compounded by uncertainty surrounding potential Federal Reserve interest rate cuts.
The shift in sentiment follows the release of robust U.S. jobs data, which has cast doubt on the likelihood of the central bank lowering its benchmark overnight rate in December. The U.S. economy added 119,000 jobs in September, exceeding the 50,000 expected by economists surveyed by Dow Jones. Consequently, the probability of a December rate cut has decreased to around 40%, according to the CME Group’s FedWatch tool.
Bitcoin’s decline is part of a wider downturn in the cryptocurrency market. XRP was down 2.3% and trading below $2.00, while ether shed more than 3% to trade well below $3,000. Dogecoin’s price remained stable. The oldest cryptocurrency also pulled stocks lower, even after a blockbuster Nvidia earnings report, with traders heavily invested in AI-related stocks holding bitcoin as well, linking the two trades.
Bitcoin’s price has largely slid since a series of liquidations of highly leveraged crypto positions in early October.
