Black Friday Market Bloodbath: BTC Plunges to 61K, ETH Falls Below 3,000

The lower-than-expected non-farm payroll in the United States has heightened concerns about slowing economic growth, leading to a rise in government bond yields and a Black Friday in the stock market. Cryptocurrencies also experienced a bloodbath, with BTC plummeting to 61K and ETH breaking below 3,000 US dollars.

Non-Farm Payrolls Below Expectations

Yesterday, the U.S. reported that only 114,000 jobs were added in July, well below expectations, with the unemployment rate rising to 4.3%. This has heightened concerns about slowing economic growth, leading investors to worry that the Federal Reserve may need to take aggressive measures to cut interest rates by two notches in September to rescue the economy. According to CME FedWatch data, the probability of a two-notch rate cut in September is close to 70%, and there may be a five-notch rate cut by the end of the year.

Bond Yields Rise, Stock Market Faces Black Friday

The yield on the U.S. 10-year Treasury bond was reported at 3.799%, dropping more than 17 basis points, hitting a low of 3.79% during the session, the lowest level since December 2023.

The VIX fear index surged, approaching 30% at one point, the first time since March last year. Major U.S. stock indices plummeted on Friday 8/1, with the Dow falling below the 40,000 mark, the S&P 500 down 1.84%, and the Nasdaq plunging 2.43%.

Taiwan's stock market also plummeted over a thousand points on Friday, marking the largest drop in history, with chip stocks being hit hard by disappointing Intel earnings.

Cryptocurrency Bloodbath, $270 Million Liquidated

Cryptocurrencies also faced a bloodbath, with liquidations totaling $270 million within 24 hours, mainly in long positions, with $82.88 million in Bitcoin and $73.75 million in Ethereum being the bulk of the liquidations.

BTC Plunges to 61K, ETH Breaks 3,000

Bitcoin has been challenging the 70,000 level several times since March this year, but has been unable to sustain it for long. Yesterday, it plunged directly to 61,000, forming a head and shoulders pattern, with short-term support seen at the 60,000 whole number level.

Ethereum also directly dropped below the 3,000 level, confirming a "sell the news" market after the launch of the Bitcoin spot ETF!