Why is Bitcoin (BTC) Price Crashing? Top Reasons Behind the 7% Drop

The post Why is Bitcoin (BTC) Price Crashing? Top Reasons Behind the 7% Drop appeared first on Coinpedia Fintech News

Bitcoin’s (BTC) price has taken a significant hit, falling by 7% and dropping below $52,900 for the first time in over a month. This sudden decline has raised questions among investors and crypto enthusiasts alike. Several factors have contributed to this sharp drop, and understanding them is crucial for predicting Bitcoin’s next moves.

U.S. Job Data Fuels Bitcoin’s Drop

One of the main reasons for Bitcoin’s dip is the release of U.S. labor market data. The nonfarm payroll data revealed that the U.S. added only 142,000 jobs, which is below Wall Street’s expectations. Investors are also concerned as the unemployment rate remains at 4.2%.

Weak job data typically signals a slowing economy, causing investors to become cautious. This has added to Bitcoin’s volatility, pushing its price downward along with other risk assets.

Institutional Outflow Surge High

Another key factor in Bitcoin’s decline is the significant outflows from spot Bitcoin exchange-traded funds (ETFs). Data from Lookonchain shows that over $227.82 million was withdrawn from 10 Bitcoin funds on Sept. 6, with Fidelity’s FBTC leading the outflows. 

10 #Bitcoin ETFs had outflows of 4,216 $BTC($227.82M)!

Sept 6 Update:

10 #Bitcoin ETFs
NetFlow: -4,216 $BTC(-$227.82M)