Bitcoin (BTC) dropped below $58,000 on Sunday because people were afraid the US economy would go into recession. A weaker-than-expected US jobs report and big crypto moves by Genesis caused the price to drop.
In July 2024, the Labor Department reported 114,000 jobs, which was less than the 175,000 jobs that were expected. The jobless rate rose to 4.3%, which was the highest it had been since October 2021. Concerns about the health of the US economy grew after the Federal Reserve decided on Wednesday to keep interest rates at 5.25% to 5.25%.
The global stock markets sold off because the job market was slowing down and the jobless rate was going up. Major indexes like the Dow Jones Industrial Average and S&P 500 fell sharply in the early trading hours.
Bitcoin fell from around $70,000 at the beginning of the week to below $62,000 on Friday. It continued to fall over the weekend. As investors became more pessimistic, the Crypto Fear and Greed measure dropped to 37.
After a week of slow performance, crypto analytics company Santiment says Bitcoin’s price is about to go up again. The Market Value to Realized Value (MVRV) number shows how much Bitcoin holders have made or lost on average.
It is currently negative 5.5%, which is a sign that prices will likely go up. Based on their MVRV ratios, other important cryptocurrencies like Ethereum, Cardano, Ripple, Dogecoin, and Chainlink also show signs of being undervalued.
Even though the past doesn’t always predict the future, Santiment’s data shows that Bitcoin and some other major cryptocurrencies may be about to see a relief rally.
