Bitcoin Takes Another Hit, Plunging Below $54,000 as US Stocks Dive!

Bitcoin Takes Another Hit, Plunging Below $54,000 as US Stocks Dive!Bitcoin's price has plummeted again, dropping over 4% and breaking below $54,000. Ethereum, the second-largest cryptocurrency, has seen an even sharper decline, falling over 6%

Bitcoin Takes Another Hit, Plunging Below $54,000 as US Stocks Dive!

Bitcoin's price has plummeted again, dropping over 4% and breaking below $54,000. Ethereum, the second-largest cryptocurrency, has seen an even sharper decline, falling over 6%. According to Coinglass data, over 86,000 traders have liquidated their positions in the past 24 hours.

The recent drop in Bitcoin's price is closely linked to the Federal Reserve's monetary policy and changes in investor sentiment. Earlier, the influx of investments into US spot Bitcoin exchange-traded funds (ETFs) had spurred a bullish rally in Bitcoin's price, but this upward trend has not been sustained. Recently, investors have begun withdrawing funds from Bitcoin ETFs, leading to a decline in Bitcoin's value.

Besides Bitcoin, US stocks also experienced a sharp decline. On September 6, the Dow Jones Industrial Average fell 1.01%, the S&P 500 Index dropped 1.73%, and the Nasdaq Composite Index plunged 2.55%. Tech giant Amazon fell 3.65%, American Express dropped 3.08%, leading the Dow Jones decline. Tesla slid 8.45%, and Nvidia lost 4.09%. Chinese stocks also saw widespread declines, with Legend Biotech dropping 10.66% and ZEEKR falling 9.78%.

Furthermore, commodities such as gold, silver, and crude oil also registered declines.

The US Bureau of Labor Statistics released nonfarm payroll data for August, revealing that the US economy added 142,000 jobs in August, lower than the expected increase of 165,000 and the previous month's gain of 114,000. August's job growth was in line with the average job creation in recent months but fell short of the average monthly increase of 202,000 in the past 12 months.

Bernstein, the chairman of the White House Council of Economic Advisers, stated that August's job growth was substantial, with wage growth exceeding inflation. Importantly, the unemployment rate decreased. In short, employment and wages increased, while inflation and unemployment declined.

Williams, the "third-in-command" at the Fed, expressed that lowering the federal funds rate is now appropriate, citing increased confidence in the inflation rate sustainably moving towards 2%. He indicated that policy can gradually shift toward a more neutral stance. Williams also noted that the job market is unlikely to generate inflationary pressure. However, Williams refrained from commenting on the potential magnitude of the first interest rate cut.