Bitcoin and Ethereum Values Decline Amid Economic Recession Concerns as Liquidation Rates Increase

• The price of Bitcoin dropped significantly below $62,000, while Ethereum fell beneath $3,000 as the repercussions of recession fears and a disappointing U.S. jobs report continue to resonate.

The cryptocurrency market is experiencing a downturn as of late Friday afternoon, with significant assets like Bitcoin and Ethereum declining by 5% or more following a dismal U.S. jobs report that also unsettled the stock market—raising concerns about a looming recession.

BTC Price Chart | Source: CoinStats

On Friday, Bitcoin’s price dropped well below $62,000, reaching a low of $61,308 according to data from CoinGecko. It has since recovered to just above $62,000 at the time of this writing, but remains down approximately 5% from a 24-hour high of $65,505.

ETH Price Chart | Source: CoinStats

In contrast, Ethereum experienced a steep decline, falling to $2,967 after having been above the $3,200 threshold less than a day prior.

At its current price of just under $3,000, it is still down nearly 6% for the day. Other significant assets have also experienced similar or even greater declines, such as Solana, which is down over 7% at a price of $154.

Friday’s volatility in the cryptocurrency markets resulted in another surge in liquidations of both long and short positions, which are bets on whether the future price of a crypto asset will increase or decrease, respectively.

As of this writing, CoinGlass reports that $269 million worth of positions have been liquidated in the past 24 hours across the market, with $82 million of those being Bitcoin positions.

This marks the second consecutive day of substantial crypto liquidations as the prices of leading assets continue to decline.

A weaker-than-anticipated U.S. jobs report released early Friday seemed to unsettle markets universally, with the stock market showing losses across the board and crypto prices ultimately following suit.

The report indicated a rise in the unemployment rate as nonfarm jobs fell significantly short of expectations, raising concerns that a U.S. recession may be developing.

Nevertheless, while the panic has had noticeable short-term impacts on crypto prices, some analysts suggest that Bitcoin could ultimately gain from a weaker U.S. dollar and anticipated interest rate cuts from the Federal Reserve.

“With the Fed weakening monetary policy, it will be supportive for fixed-supply assets such as Bitcoin and gold,” stated CoinShares Head of Research James Butterfill.

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.