After another drop on Friday, Bitcoin (BTC) is now trading below $54,000. While the downward crossing of this threshold has already been tested in recent weeks, a daily close below is a first since December 2021. Let's take a look at these figures.
BTC ends Friday below $54,000
Friday, Bitcoin (BTC) continued its downtrendso much so that the day ended below $54,000. While this is not the first time that such a level has been crossed downwards in recent weeks, it is nevertheless the first time that the asset has seen this price at the close of the day since December 3, 2021.
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As of this writing, BTC is trading at $53,870, down 5.2% over the past 24 hours:
Figure 1 — BTC price in daily data
For their part, other assets are not doing any better, especially with ETH at $2,240down sharply by 6.7%. Across the entire crypto ecosystem, liquidations generated on centralized platforms thus amount to nearly $293 million, of which more than 75% concern long positions:
Figure 2 — Liquidations in the crypto ecosystem
While there are no specific ecosystem-based reasons for the decline, some answers can still be found in fears surrounding the U.S. economy.
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Concerns about the US economy
For example, employment figures disappointed when they were announced on Friday, with the creation of 142,000 non-farm payrolls in August, compared to expectations for 165,000.
As for the rate cut expected on September 18, the market now expects 70% to a level reduced to between 500 and 525 basis points and 30% to a range of 475 to 500 basis points.
This economic situation has also caused a drop of 1.73% on the S&P 500 and 2.69% on the NASDAQSome stocks fell more than others, including Meta, down 3.21%, and NVIDIA, down 4.9%.
👉 Also in the news — Arthur Hayes sees Bitcoin below $50,000 this weekend — A plausible scenario?
While at first glance, the cryptocurrency market is not supposed to be impacted by the global economy, this is without taking into account the tendency of institutional investors to withdraw from asset categories considered risky during phases of turbulence.
After such a drop, the $50,000 area will now have to be particularly monitored.
Cryptoast Research: Don't Spoil This Bull Run, Surround Yourself With Experts
Sources: TradingView, Coinglass
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Since 2021, I have devoted my free time to seriously training myself on cryptocurrencies in order to acquire as much knowledge and credibility as possible. I often have the opportunity to conduct interviews with influential figures in the blockchain industry. I also conduct in-depth analyses on Web3 themes to offer exclusive content to Cryptoast readers.
Vincent Maire
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