The Bitcoin price dropped below $54,000 on September 6 as it experienced a massive wave of sell-offs from traders. This price decline was sparked by developments on the macroeconomic side, which painted a bearish outlook for Bitcoin.
Bitcoin’s price retreated following a weak August job report. The US Bureau of Labor showed that the unemployment rate fell to 4.2%, but job additions were lower than expected. This raises concerns for Bitcoin, considering the fragile state of the US economy.
The bearish outlook for Bitcoin was compounded by revised job reports for July and June, showing fewer job additions than initially reported. This has created further uncertainty regarding Bitcoin.
September historically has been a bearish month for Bitcoin. NewsBTC reported a sizeable market crash earlier in the week, with significant volatility in the US stock market.
Macroeconomic factors remain primarily responsible for Bitcoin’s recent bearish price action, especially with a potential rate cut from the US Federal Reserve still uncertain. The July job reports and Yen carry trade have previously caused significant drops in Bitcoin’s price.
Arthur Hayes, co-founder of BitMEX, expects Bitcoin to drop below $50,000 this weekend and revealed he had opened a short position.
The chance of a rate cut by the Fed, which could have provided bullish momentum, appears unlikely following the job data's release. This further adds to Bitcoin's bearish outlook.
Despite these short-term challenges, some analysts remain optimistic about Bitcoin’s future. CryptoCon suggested that Bitcoin is mirroring its 2016 market cycle, gearing up for a new all-time high.
At the time of writing, Bitcoin trades around $54,150, down almost 4% in the last 24 hours, according to CoinMarketCap.
