Bitcoin price has plunged back below $17,000, reaching a new intraday low; here’s why

On the Bitstamp market, Bitcoin price dropped to a new intraday low of $16,787 following better-than-anticipated U.S. jobs statistics. At the time of writing, BTC is changing hands at $16,946.


Bitcoin Price Suddenly Plunges Below $17,000. Here’s Why

The most excellent economy in the world unexpectedly added 263,000 non-farm payrolls last month, according to the U.S. Bureau of Labor Statistics. The market had anticipated a considerably lower gain of 200,000 jobs. All risky assets suffered losses, including those related to the major U.S. stock market indices, which also fell considerably down.

The Federal Reserve might decide against reducing the rate of interest rate increases if the jobs market doesn’t slow down.

After Fed Chair Jerome Powell indicated in his speech that the central bank was preparing to adopt a more dovish policy, bitcoin and stocks increased earlier this week. Investors anticipated the Fed would end its string of 75-basis-point rises in December by raising the benchmark interest rate by 50 basis points. The most current job data adds further ambiguity to the picture.

The Fed may maintain its robust approach or grow even more hawkish under further pressure, depriving the owner of risky assets in a much-awaited dovish turn. Before Powell’s eagerly anticipated address earlier this week, Bitcoin was able to retake the $17,000 mark. Bulls, though, have been unable to maintain their momentum.

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