Crypto Markets Slump After Weak US Jobs Report Fuels Investor Fears
A Rough Start to the Week for Crypto
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On Monday, Bitcoin (BTC) traded around $67,500. That’s down about 2% for the day and 1.7% over the past week. It did touch $70,000 briefly earlier, but couldn’t hold the gains. Since early February lows near $60,000, BTC has stuck mostly to a narrow range of $68,000 to $70,000.
Ethereum (ETH) is hurting more, with 3% losses in the last 24 hours and 3.5% down weekly. The total crypto market cap dropped 2% to $2.39 trillion. Most top-10 tokens are lower, except TRON (TRX) which saw small gains. Dogecoin (DOGE) took the biggest hit, down 7.5% in a day but still up nearly 7% for the week.
Market Movers: Winners and Losers
Trading volumes for Bitcoin hover around $40 billion in the past day. This shows active trading but no clear direction from investors.
- Top Gainers: Cosmos (ATOM) led with 2.4% up, followed by Bittensor (TAO) at 1%.
- Biggest Losers: Rain (RAIN) fell over 8%, and Dogecoin was the second-worst among large caps.
Overall, the top-100 coins show mixed signals. Pockets of strength exist, but the broader trend points down.
The Trigger: Disappointing US Jobs Report
The main culprit for this
Weak job growth raises fears of a slowing economy. It could mean the Federal Reserve keeps interest rates high longer to fight inflation. High rates hurt risk assets like stocks and crypto, which thrive in low-rate environments.
Bitcoin acts like a “high-beta” version of tech stocks. When growth slows, BTC falls harder than the broader market. This tight link shows crypto hasn’t fully decoupled from traditional finance yet.
Liquidations and ETF Flows Add Pressure
Traders got caught off-guard too. CoinGlass data shows $232 million in total liquidations over 24 hours. Long positions took the brunt at $159 million. Bitcoin liquidations hit $105 million, Ethereum $90 million.
US spot crypto ETFs saw more outflows. Spot Bitcoin ETFs had net outflows of $360 million last week, keeping total assets at $87 billion. Ethereum ETFs lost $161.2 million weekly, with assets at $11.7 billion.
These flows signal big investors pulling back. Negative ETF money often weighs on prices short-term.
Fear Rules the Market
The Crypto Fear & Greed Index sits deep in “extreme fear” territory. It’s been there for most of the past month. This reading suggests panic selling and oversold conditions, which could set up a rebound if sentiment flips.
Analysts note a lack of strong conviction. Without clear bullish catalysts, sideways or lower trading may persist.
Regulatory Hopes Amid the Chaos
Not all news is bad. US Treasury Secretary Scott Bessent called for Congress to pass the CLARITY Act. This bill would set clear federal rules for digital assets. He said it would bring “great comfort” to markets.
Bipartisan support exists now, but it might fade later this year. Clear regs could boost confidence long-term, helping crypto mature as an asset class.
What’s Next for Crypto Prices?
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Bitcoin’s range-bound action ($68K-$70K) could break lower toward $65K support or higher to $72K resistance. Ethereum faces similar tests around $3,200-$3,400.
Positive signs include steady volumes and ETF assets still in billions. Altcoins like ATOM show niche strength in areas like interoperability and AI.
For investors, this dip offers buying chances if you believe in crypto’s long-term story. But risk management is key in fearful times.
Key Takeaways
- US jobs miss drives
, with BTC at $67.5K and ETH down 3%. - Market cap at $2.39T; liquidations hit $232M.
- ETFs see outflows, Fear & Greed in extreme fear.
- CLARITY Act could bring regulatory clarity.
- Stay tuned for macro data to gauge the bottom.
Crypto remains volatile, but opportunities arise in slumps. Keep an eye on risk assets and global economic signals.
