Bitcoin slid to new multi-week lows on Friday, reaching $74,762 after the Wall Street opening, as its price trajectory sharply diverged from that of major US equities.
Stocks rebound while Bitcoin declines
Despite the drop in Bitcoin, US tech stocks staged a recovery after Thursday’s sell-off. The Nasdaq Composite Index climbed 1.8% within the first hour of trading, and the S&P 500 added 0.6%. Leading tech companies outperformed the wider market, with both SanDisk and Micron Technologies jumping 6.3%.
By contrast, the total cryptocurrency market capitalization decreased 0.5% on the day. Data from TradingView showed BTC/USD sinking to its lowest point since August 21, losing the $75,000 level that had provided support since mid-summer.
| Market | Latest Performance |
|---|---|
| Bitcoin | Fell to $74,762, lowest since Aug. 21 |
| Nasdaq Composite | Up 1.8% in first hour |
| S&P 500 | Up 0.6% |
| SanDisk/Micron | Both up 6.3% |
US employment data shifts market sentiment
The market reaction followed the latest US nonfarm payrolls figures, which showed that the economy added 165,000 jobs in October, far exceeding forecasts of 65,000. Additionally, September’s jobs data was revised upward from 29,000 to 60,000. The US Bureau of Labor Statistics reported that unemployment fell to 4.1% compared to analyst expectations of 4.2%, with gains recorded particularly in professional and business services, health care, and transportation and warehousing.
Employment growth in professional and business services, health care, and transportation and warehousing contributed to the better-than-expected numbers, setting the unemployment rate at 4.1% versus the predicted 4.2%, according to the Bureau of Labor Statistics.
Stronger labor data has raised concerns among crypto investors that tighter monetary policy could drain liquidity from risk assets. Improved employment figures suggested the Federal Reserve might be more inclined to raise rates further, adding pressure on digital assets such as Bitcoin.
CME Group’s FedWatch Tool recorded an increase in bets for a 25 basis point rate hike at the Federal Open Market Committee’s December meeting, up from 66.9% to 76.8% after the jobs data release.
| Date | Probability of Fed Hike |
|---|---|
| Before jobs data | 66.9% |
| After jobs data | 76.8% |
Bitcoin tested support at its 50-week simple moving average (SMA) at $77,533, raising concerns that further declines could occur if this level fails to hold.
Mini dictionary: Simple Moving Average (SMA) is a technical indicator that calculates the average price of an asset over a specified number of periods, helping traders identify support and resistance levels in market trends.
Analysts warn of further downside risks
Keith Alan, cofounder of the crypto analytics platform Material Indicators, highlighted in his latest market analysis that Bitcoin’s 50-week trend line remains critical. This technical support has held since mid-September.
Alan cautioned that, while the support appears strong from both technical and structural standpoints, its resilience cannot be confirmed until the weekly candle closes. He indicated that a break below $75,500 could open the door to $69,000, unless BTC/USD forms a sequence of higher highs and higher lows on short-term charts.
