News View Non-AMP

Why is Bitcoin (BTC) Price Crashing? Top Reasons Behind the 7% Drop

Published by
Mustafa Mulla

Bitcoin’s (BTC) price has taken a significant hit, falling by 7% and dropping below $52,900 for the first time in over a month. This sudden decline has raised questions among investors and crypto enthusiasts alike. Several factors have contributed to this sharp drop, and understanding them is crucial for predicting Bitcoin’s next moves.

U.S. Job Data Fuels Bitcoin’s Drop

One of the main reasons for Bitcoin’s dip is the release of U.S. labor market data. The nonfarm payroll data revealed that the U.S. added only 142,000 jobs, which is below Wall Street’s expectations. Investors are also concerned as the unemployment rate remains at 4.2%.

Weak job data typically signals a slowing economy, causing investors to become cautious. This has added to Bitcoin’s volatility, pushing its price downward along with other risk assets.

Institutional Outflow Surge High

Another key factor in Bitcoin’s decline is the significant outflows from spot Bitcoin exchange-traded funds (ETFs). Data from Lookonchain shows that over $227.82 million was withdrawn from 10 Bitcoin funds on Sept. 6, with Fidelity’s FBTC leading the outflows. 

Despite these massive sales, BlackRock has taken a neutral stance, refraining from buying or selling Bitcoin.

Bitcoin Miners May Be Forced to Sell

Bitcoin miners have been accumulating BTC since mid-August. However, with the price falling below $60,000, there’s a growing fear that miners might be forced to sell. 

Meanwhile, data from Glassnode indicates that sell pressure from miners could increase if the bearish sentiment continues, adding further strain to the market.

Recession Fears Mount

Concerns about a potential U.S. recession have also contributed to the drop. Chicago Fed President Austan Goolsbee recently hinted at the possibility of a recession, which has spooked investors.

Massive Liquidation In The Market

Additionally, the crypto market has seen a massive liquidation wave. In the past 24 hours, 85,882 traders were liquidated, amounting to $314.71 million. Bitcoin alone saw $123.40 million in liquidations, with $83.8 million in long positions.

As a result, Bitcoin’s fear and greed index dropped to 23%, signaling extreme fear in the market. Traders wonder whether this dip represents a temporary correction or a deeper market downturn.

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

FXGuys Presale 2025: The Ethereum Alternative Breaking Out During the Crypto Presale Boom

Are you looking for a digital asset with the features to deliver huge profits during…

April 29, 2025

Investors Flock to Bitcoin Solaris as Solana-Powered Token Aims to Replicate Bitcoin’s Historic Rise

Momentum is building fast around Bitcoin Solaris, and for many in the crypto space, it…

April 29, 2025

Terra Luna Repayment: How to File Your Claim Before May 16

The collapse of Terra USD and Luna coins left countless investors in turmoil. Now, as…

April 29, 2025

Celsius Founder Faces 20 Years in Prison; Token Price Soars 70%

Former Celsius Network CEO Alexander Mashinsky is facing a recommended sentence of at least 20…

April 29, 2025

Top 10 Altcoins to Look Up in May- BONK, XMR, SEI, TAO & a Few More May Lead the AltSeason

The crypto markets are following a range-bound consolidation after the latest upswing, which suggests the…

April 29, 2025

Pi Network Pushes Global Utility Despite Bearish Price Trend: Is $0.55 Next?

Pi Coin is under pressure, currently trading just below $0.60 after dropping over 4% in…

April 29, 2025