Bitcoin plunged from $111,000 to $105,000, shedding 5.4% of its value following unexpectedly weak U.S. employment figures. The decline ignited significant market volatility and prompted institutional investors to rapidly reduce crypto exposure.
The jobs data spurred a flight to traditional safe-haven assets like gold and government bonds, which saw noticeable gains during the downturn. Broader cryptocurrency markets mirrored Bitcoin’s slump, with Ethereum and other altcoins registering comparable declines amid the sell-off.
Historical market patterns indicate this could signal Bitcoin entering a cyclical cooling phase, though analysts project potential recovery before year-end. Regulatory uncertainties further contributed to institutions scaling back Bitcoin and Ethereum holdings, reflecting heightened caution.
Market observers note that such pullbacks align with Bitcoin’s typical behavior after major moves, emphasizing the market’s sensitivity to macroeconomic indicators and institutional positioning.