Bitcoin dropped below $81,000 on Friday on the back of stronger-than-expected U.S. jobs data that reduced the chances of a December interest rate cut.
BTC fell 7.4% to $80,550 within 24 hours, hitting its lowest point in seven months. This marks a steep 36% decline from its October peak of $126,320.
The surprise came from September’s delayed jobs report, which showed the U.S. economy added 119,000 jobs — more than double the expected 50,000.
These numbers suggest inflation remains a concern, making it less likely the Federal Reserve will cut rates next month. According to the CME FedWatch Tool, there’s now only a 35.4% chance of a December rate cut.
Bitcoin and Crypto Market Sentiment Hits Rock Bottom
The Crypto Fear & Greed Index dropped to 11, signaling “extreme fear” among investors. The entire crypto market lost 6.62% of its value in one day, with total market cap falling below $3 trillion for the first time since May.
Vincent Liu from Kronos Research explained that thin liquidity and short-term profit-taking made the drop worse. “The market is recalibrating risk, reacting to macro data points,” he said.
Liu added that a single rate cut won’t be enough to push prices back to October levels. The market needs fresh capital flows and stronger on-chain demand for a real recovery.
Nearly $2 Billion in Liquidations
The sell-off triggered massive liquidations across crypto markets. Almost $2 billion in leveraged positions were wiped out, affecting over 363,700 traders. The largest single liquidation was a $36.78 million Bitcoin position on Hyperliquid.
Bitcoin ETFs also saw heavy outflows, with $903 million leaving these funds on Thursday alone — the second-largest outflow since their launch. This institutional selling added more pressure to already weak markets.
Some analysts believe Bitcoin could fall further to key support levels around $81,900 or even $73,000-$78,000 before finding a bottom. However, LVRG Research’s Nick Ruck sees this as a “healthy repricing” after last month’s rally, with on-chain data showing signs that capitulation may be nearing its end.
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