Bitcoin plunges 17.8% on shocking jobs data, breaking below $65,000. ETH falls to the low $1,900s amid increased volatility. XRP plunges 25% in one day as investor sentiment plummets.
Design = Blockstreet Reporter Jeong Ha-yeon
With the US employment figures released the previous day significantly below market expectations, signaling a slowdown in the labor market, risk aversion has spread across global asset markets. The virtual asset market has also faced strong selling pressure, with its total market capitalization declining by approximately 572 trillion won over the past 24 hours.
Bithumb Bitcoin (BTC) daily chart
Bitcoin (BTC) plunged 17.8% from its previous high following the release of the employment report, fueled by a sharp increase in risk aversion. As of 4:00 PM today, the 6th, Bitcoin was trading at $65,100, with volatility significantly increasing as key support levels collapsed in a short period of time. Tether dominance rose to 8.38% at the same time, suggesting a shift in funds toward safe-haven stablecoins.
Bithumb Ethereum (ETH) daily chart
Ethereum (ETH) also failed to avoid the impact of Bitcoin's weakness. Ethereum fell approximately 19% over the day, trading at $1,915 as of 4 p.m. The rapid breach of what was perceived as a mid- to long-term support level opens the door to further volatility in the short term.
Bithumb Ripple (XRP) daily chart
XRP suffered the largest decline among the three. Amidst risk-aversion, selling pressure concentrated, causing it to plummet by approximately 25% in one day and was trading at around $1.30 as of 4 p.m. Investor sentiment is rapidly weakening, and the cryptocurrency is continuing to test its technical support level.
This paper analyzes the recent plunge in the virtual asset market as a result of the accelerated global risk aversion following the shock of the US employment data. Given that Tether dominance has settled in the 8% range, even if a short-term rebound occurs, a reversal in the trend will likely require at least a dominance drop below 8%, leading to a recovery in risk-on sentiment.
The current market has entered a volatile phase following a sharp price adjustment. In the short term, it is more likely that the volatile market will continue with the sale of items by price range rather than a further plunge.
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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