Bitcoin plunges below $86,000 as US jobs data dampens rate cut hopes

Bitcoin fell to a nearly seven-month low of $85,700 on Thursday, marking a 32% decline from its all-time high, following the release of stronger-than-expected U.S. jobs data. The September non-farm payroll report showed 119,000 jobs added, significantly exceeding the consensus estimate, which fueled concerns that the Federal Reserve might pause its easing cycle due to lingering inflationary pressures. This macro data dampened hopes for a December rate cut, causing the market to recalibrate risk, as noted by Vincent Liu, CIO at Kronos Research. The Crypto Fear & Greed Index signaled "extreme fear" at 11. Analysts suggest that for Bitcoin to sustain a rally, it will require not only a pause in quantitative tightening but also fresh capital inflows and renewed on-chain demand. Meanwhile, LVRG Research Director Nick Ruck characterized the current drop as a "healthy repricing" of overextended positioning from the previous month's rally.

(Source：The Block)