Bitcoin slipped to fresh multi-month lows on Thursday after stronger US employment figures raised doubts about an early interest rate cut. The leading cryptocurrency fell 7.32 percent over the past 24 hours to around 85,700 dollars late Thursday evening, its weakest level in nearly seven months and now roughly 32 percent below its October record of 126,080 dollars.
Market sentiment has taken a sharp hit. The Crypto Fear and Greed Index stayed at 11, signaling extreme fear as the broader crypto market declined more than 6 percent during the day.
Vincent Liu, chief investment officer at Kronos Research, said Bitcoin’s drop below the 85,500 dollar mark reflects how sensitive traders remain to macroeconomic signals. He noted that thin liquidity and quick profit-taking have magnified the selloff.
“The market is recalibrating risk, reacting to macro data points,” he said.
Jeff Cox
The latest US non-farm payroll report showed the economy added 119,000 jobs in September, well above the 50,000 economists expected. The surprise increase suggested lingering inflation pressures, which could prompt the Federal Reserve to delay any easing of monetary policy. According to CME Group’s FedWatch Tool, traders now see only a 35.4 percent chance of a 25-basis-point cut in December.
Liu said Bitcoin could see a bounce if the Fed cuts rates, but a sustained recovery would require more than a policy shift. He pointed to the need for renewed capital inflows, stronger on-chain demand, and a clear improvement in sentiment.
Nick Ruck, research director at LVRG, viewed the current slump as a natural correction following last month’s rally. He said on-chain data shows signs that selling pressure in both spot and futures markets is stabilizing, which may signal that the worst of the capitulation is nearly over.
The coming weeks will test whether macro conditions and market sentiment can align to support a stronger rebound, or if the crypto market will continue to face downside pressure as investors look for clarity on the Fed’s next move.
