Leading cryptocurrencies fell further alongside stocks on Thursday, as stronger jobs data cast doubt on whether the Federal Reserve will deliver another rate cut in December.
BTC Down 30% From Highs
Bitcoin sank below $87,000 for the first time in seven months, deepening its ongoing bearish trend. The apex cryptocurrency traded 30% below its all-time highs set only six weeks ago. BTC traded between $86,040.80 and $93,025.07 for the day.
Ethereum briefly slipped below $2,800 before recovering part of its losses overnight. Regardless, the second-largest cryptocurrency has erased all the gains made since mid-July.
Cryptocurrency liquidations spiked to $821 million in the last 24 hours, according to Coinglass, with nearly $700 million in long positions wiped out.
That said, roughly $383 million in shorts could be liquidated if Bitcoin reclaimed $95,000.
Bitcoin's open interest fell 2.55% in the last 24 hours. Since Bitcoin’s all-time high on Oct. 7, more than $28 billion locked in its derivatives have been erased.
The "Extreme Fear" sentiment prevailed, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
| Cryptocurrency (Market Cap>$100 M) | Gains +/- | Price (Recorded at 8:25 p.m. ET) |
|---|---|---|
| Tensor (TNSR ) | +184.78% | $0.2305 |
| Audiera (BEAT) | +82.26% | $0.8933 |
| Staika (STIK ) | +45.48% | $0.8670 |
The global cryptocurrency market capitalization fell below $3 trillion, following a decline of 4.25% in the last 24 hours.
Stocks End Lower As Labor Report Dampens Rate Cut Hopes
The stock market rebound lost steam on Thursday. The Dow Jones Industrial Average tumbled 386.51 points, or 0.84%, to end at 45,752.26. The S&P 500 slipped 1.56% to end at 6,538.76, while the tech-heavy Nasdaq Composite shed 2.16% to finish the day at 22,078.05.
Shares of Nvidia Corp. (NASDAQ:NVDA) closed down 3%, reversing after earlier gaining on strong earnings and guidance.
Benzinga Edge delivers real-time stock alerts, trade ideas, and professional investing tools to help you navigate the market. Find out more about NVDA here.
Meanwhile, non-farm payrolls jumped by 119,000 in September, reviving growth optimism and casting doubt on the December rate cut. As of this writing, traders priced in a 39% chance that the Fed will slash rates by 25 basis points, down from 50% a week earlier, according to the CME FedWatch tool.
Why $2,800 Is ‘Important’ For ETH?
Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet, noted the increased coupling of the cryptocurrency market with traditional finance.
"That link is ultimately positive for long-term adoption, even if it creates short-term pressure," Elkaleh said in a note to Benzinga.
The analyst added that reduced liquidity expectations can weigh in on Bitcoin and Ethereum, triggering "risk-off sentiment" in the near term.
"I view the next few months as a healthy recalibration rather than the start of prolonged weakness, helping flush out speculative excess and setting the stage for more stable growth," Elkaleh noted.
On-chain analytics firm CryptoQuant highlighted that $2,800, which aligns with realized price clusters of retail and whale investors, serves as an "important" support level for Ethereum.
"Historically, realized price levels have often marked cycle bottoms, suggesting that this range could once again provide a foundation for a short-term rebound," the firm added.
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