Bitcoin Gives Up $80,000 After US Jobs Surprise; $200 Million in Longs Liquidated Within an Hour
Summary
- It said Bitcoin fell about 1.7% and gave up the $80,000 level immediately after U.S. August nonfarm payrolls came in far above market expectations.
- Crypto-focused outlet Cointelegraph said about $200 million in crypto long positions were liquidated over the past hour.
- It said concern that stronger-than-expected employment data could increase the likelihood of a September interest-rate hike weighed on risk assets, triggering a chain of long-position liquidations.
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Bitcoin fell sharply after U.S. August employment data came in far above market expectations, triggering large-scale liquidations of long positions across the cryptocurrency market.
Crypto-focused outlet Cointelegraph wrote on X, formerly Twitter, on September 4 that about $200 million in crypto long positions had been liquidated over the past hour.
Earlier, U.S. nonfarm payrolls increased by 162,000 in August, well above the market forecast of 55,000. Bitcoin dropped about 1.7% immediately after the data release, giving up the $80,000 level.
Stronger-than-expected employment data added pressure to risk assets as investors grew wary that it could increase the likelihood of a Federal Reserve rate hike in September. As Bitcoin slid quickly, long positions built on expectations of further gains were liquidated in a chain reaction.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.