Bitcoin plunges to the $80,000 level... lowest since April

Source: DecenterKorea Original Title: Bitcoin Plummets to the $80,000 Range… Lowest Point Since April [Decenter Market Report] Original Link: https://www.decenter.kr/NewsView/2H0JG4AXTB/GZ03

The price of Bitcoin has fallen below $90,000, marking the lowest level since last April. With strong U.S. employment figures reducing the likelihood of an interest rate cut next month, investor sentiment towards risk assets is rapidly deteriorating.

According to a global cryptocurrency market monitoring site on the 21st, as of 8:25 AM, Bitcoin(BTC) is trading at $87,218.99, down 4.55% from 24 hours ago. This is the lowest level since it fell to $86,939.99 on April.

Ethereum(ETH) has also fallen by 5.28% to $2857.08, XRP(XRP) has decreased by 4.03% to $2.02, and Solana(SOL) is trading at $134.71, down 1.44%.

The same goes for the domestic market. In the domestic cryptocurrency exchange, BTC recorded a drop of 3.49% compared to the previous day, priced at 130,825,000 won. ETH decreased by 3.74% to 4,296,000 won, and XRP is trading at 3,030 won, down 4.08%.

The weakness in the cryptocurrency market on this day is due to the strong performance of the U.S. labor market, which has further decreased the likelihood of a rate cut by the U.S. Federal Reserve ( Fed ).

On the 20th, local time, the newly released non-farm employment figures for September showed an increase of 119,000 jobs, significantly exceeding the expected 53,000 jobs. The unemployment rate was 4.4%, higher than the anticipated 4.3%, indicating a strong labor market. Consequently, expectations for a rate cut in December on the FedWatch market of the Chicago Mercantile Exchange (CME) dropped to below 40% following the employment announcement.

The hawkish remarks from the Fed officials have also lowered expectations for interest rate cuts and harmed investor sentiment. Fed President Loretta Mester reaffirmed her opposition to further rate cuts in a separate statement that day. She warned that “the September employment data has somewhat lost meaning due to the lag” and that “rate cuts aimed at supporting the labor market could prolong high inflation and encourage excessive risk-taking in financial markets.” She further pointed out that “if that happens, the next recession could be much deeper and the shock could be greater than usual.”

In addition, since the chain liquidation in October, whale investors leaving the cryptocurrency market have also contributed to the price decline. Whale investors have sold approximately $1.3 billion(, which is about 1.9168 trillion won), in Bitcoin.

The investment sentiment in cryptocurrency is still in a state of 'extreme fear.' The Fear and Greed Index from a cryptocurrency data analysis company is currently at 11 points. This index indicates that the closer it is to 0, the more the investment sentiment is retracted, and the closer it is to 100, the more it indicates market overheating.