Bitcoin Plunges Below $30,000 Amid Disappointing Economic Reports, Rebounds Later

• Bitcoin and the broader crypto market reacted negatively to strong jobs data as it gives room to the Fed to hike interest rates further.
• Altcoins enter a deeper correction. While the ETH price tanks to $1,850 network activity remains robust.

Over the last two days, the world’s largest crypto bitcoin (BTC) has continued to face some selling pressure after touching its 2023 high earlier this week. As of press time, BTC is trading 1.59% down trading at $30,182. Since its peak earlier this year, the nearly $25 billion has been eroded from Bitcoin’s market cap.

Although the broader crypto market has decided to look past the SEC actions this year, the recent selling pressure comes amid the macro developments. Crypto investors made conclusions based on the ADP private sector jobs report and the ISM Services Index, both of which showed unexpected strength. However, these positive indicators were overshadowed by concerns about economic growth and potential inflation, causing a shift in sentiment among investors.

Strong jobs data gives room for the Fed to push further its interest rate hikes. The broader crypto market seems to perceive this negatively and hence we can see some selling pressure. However, analysts believe that Bitcoin (BTC) is having strong support at $30,000. Banxa’s U.S. CEO, Richard Mico, highlighted Bitcoin’s support at $30,000 and the positive signals surrounding spot BTC applications. In an email to CoinDesk, he noted:

We could still have a rate hike or two ahead of us, but the Federal Reserve certainly appears to be closing in on peak rates if not already reached. We’ll likely have to wait until next year’s Bitcoin halving to experience full-on bull mode, but we’re getting closer by the day and many are keen to front-run what they expect will be a continued uptrend. The market is reflecting an increasingly optimistic sentiment and the next 18 months are going to be very exciting.

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Altcoins Face Higher Selling Pressure

Apart from Bitcoin, altcoins are facing a fall to a greater degree. Ethereum (ETH) price is down by 3.61% in the last 24 hours and has moved to the $1,850 level. Data from Greekas.live shows: “220k ETH options are about to expire with a Put Call Ratio of 0.48, a max pain point of $1,875, and a notional value of $410 million.”

Although the ETH price sees some selling pressure, the address activity shows robust growth. Ethereum’s network is experiencing steady growth as new addresses are being created at an accelerated rate, indicating potential market cap growth in the future.

Courtesy: Santiment

Many major cryptocurrencies initially experienced significant drops but later recovered some of their losses. Litecoin and SHIB saw declines of over 6% and 3%, respectively. On the other hand, SOL, the token of the Solana blockchain, surged by more than 11% at one point and remained up by over 4%. The overall performance of the crypto markets was recently down by 1.7%.

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