This Bitcoin price fell below $54,000 on September 6, as the flagship cryptocurrency experienced a massive sell-off from traders. This price drop was triggered by events in macroeconomic sidewhich presented a bearish outlook for Bitcoin.

Bitcoin falls after feeble jobs report

Bitcoin price fell after a feeble August jobs report. Data from the US Bureau of Labor showed that unemployment rate fell to 4.2%, while the labor market added 142,000 nonfarm payroll jobs. While the unemployment rate was in line with expectations, the number of up-to-date jobs was lower than the expected 164,000 originally estimated by market experts.

This casts even more doubt on Bitcoin’s trajectory, considering how brittle it is US economy looks like at the moment. This poses a threat to risk assets like the flagship crypto. The bearish outlook for Bitcoin was further reinforced by revisions to the July and June employment reports, which showed the US added fewer jobs than initially reported in those months.

Bitcoin has already had a abrasive start to September, which is historically very bearish for the leading cryptocurrency. NewsBTC reported that Bitcoin saw a price crash earlier this week as markets continue to feel the effects Yen Trading and after significant volatility on the US stock market that resulted in the loss of more than $1.05 million on September 3.

Macroeconomic factors remain largely responsible for the recent bearish price action in Bitcoin and the broader cryptocurrency market, especially with the US Federal Reserve’s interest rate cut still on hold. It is worth mentioning that the July jobs report (the lowest employment in two years) and the yen carry trade were responsible for August 5th market crashwhich caused the value of bitcoin to fall below $50,000.

Interestingly, Arthur Hayes, co-founder of the BitMEX cryptocurrency exchange, he stated that he expects Bitcoin to drop below $50,000 this weekend, revealing that he has opened a brief position.

Interest rate cuts are becoming less likely

For some time now, the cryptocurrency market has been expecting the Fed to cut interest rates next week FOMC meetingwhich will take place on September 17-18. Analysts Bernstein Planned that this move would provide some form of bullish momentum for Bitcoin price. However, a rate cut, especially one of 50 basis points (bps), is currently unlikely following the release of the employment data.

Cryptocurrency Commentator Kobeissi’s letter highlighted with an X (formerly Twitter) fasting that the odds of 50 basis points have fallen to 23% in prediction markets. The Fed may not be in a hurry to cut rates any more because the labor market is not as bad as initially feared after the July employment report.

Whatever happens, crypto analysts like CryptoCon believe the worst is almost over for Bitcoin. CryptoCon recently noticed that Bitcoin was mirroring its price action from the 2016 market cycle and suggested that the flagship cryptocurrency was preparing for another phase of growth that would take it to a up-to-date level All-time High (ATH).

At the time of writing, Bitcoin is trading at around $54,150, down almost 4% in the past 24 hours, according to data data from CoinMarketCap.

Featured Image from EastMojo, Chart from TradingView