Bitcoin encountered a sharp decline on Friday following Wall Street’s opening, with its price sinking to $74,762—the lowest point since August 21. In contrast, U.S. equities rebounded, underscoring a distinct separation between the movements of the crypto market and traditional stocks.
Employment Data Alters Interest Rate Projections
According to TradingView data, BTC/USD dipped below the $75,000 threshold, while the overall cryptocurrency market cap slid by 0.5% during the day. Meanwhile, U.S. stock indices surged, with the S&P 500 advancing 0.6% and the Nasdaq Composite climbing 1.2%. Shares of SanDisk and Micron Technologies jumped 6.3%.
The U.S. Bureau of Labor Statistics revealed that non-farm payrolls increased by 165,000 in October, surpassing market expectations of 65,000. September’s figures were also revised upward, from 29,000 to 60,000. The unemployment rate came in at 4.1%, slightly better than the anticipated 4.2%.
The U.S. Bureau of Labor Statistics reported that job additions were notably strong in professional and business services, healthcare, and transportation and warehousing sectors.
The robust employment report bolstered expectations of a tighter monetary policy from the Federal Reserve by year-end. According to CME Group’s FedWatch data, the probability of a 25 basis point interest rate hike at the Federal Reserve’s December meeting increased from 66.9% to 76.8%. This shift in liquidity expectations pressured risk-sensitive assets like cryptocurrencies.
Stocks Climb as Bitcoin Stumbles
The divergence between the recovering U.S. stock market and Bitcoin’s downturn reflects investors’ short-term inclination toward tech shares. Following Thursday’s significant sell-off, investors took the opportunity to buy dips, particularly in technology stocks. However, Bitcoin responded more sensitively to macroeconomic data affecting interest rate expectations.
Bitcoin’s price also tested support near its 50-week simple moving average of $77,533. Market participants view this level as crucial for the medium-term outlook.
Experts Warn of Potential $69,000 Bitcoin Risk
Keith Alan, co-founder of crypto trading platform Material Indicators, noted that the preservation of the trendline support, in place since mid-September, would become clearer with the weekly close. Material Indicators specializes in analyzing market liquidity and order flow.
Keith Alan remarked that the sustainability of this technically and structurally robust support cannot be confirmed before the weekly close. If the $75,500 region is lost, the price may fall to $69,000.
According to Alan, for an upward recovery to take place, Bitcoin needs to form a series of higher lows and highs over shorter time frames. In the absence of this pattern, the market may maintain a cautious stance.
