Bitcoin Drops Below $90,000 Amid US Data Delays and Market Jitters
Bitcoin fell below $90,000 in Asia, reaching a six-month low as traders reduced risk amid delays in US economic data caused by the government shutdown. September's nonfarm payrolls data, expected on Thursday, had been paused, leaving uncertainty about the US economy.
Expectations for Federal Reserve interest rate changes shifted, with the probability of a rate cut in December dropping to around 40% from over 60% earlier, which prompted investors to move toward safer assets and hold more cash. At the time, Bitcoin was around $90,190, down 5.1%; Ether was $2,994, down 5.5%; XRP was $2.15, down 4.5%; and the total cryptocurrency market capitalization fell 4.4% to $3.17 trillion.
US stocks also closed sharply lower, with the S&P 500 and Nasdaq breaking key levels for the first time since late April, as investors awaited Nvidia's earnings report and the delayed jobs data. In the Asia-Pacific region, shares fell as well: the MSCI index excluding Japan declined 0.7%, and Japan's Nikkei dropped over 2%, reflecting caution ahead of the upcoming US data and Nvidia results.
Market analysts such as Gadi Chait of Xapo Bank attributed the decline to leverage being flushed out and portfolio adjustments, describing it as a normal market drawdown rather than a reversal in long-term crypto adoption. Bitfinex analysts noted that this decline is the third-largest pullback since 2023 and the second-largest since the launch of Bitcoin ETFs, suggesting a potential local bottom could form soon.
Nvidia earnings and AI-related market sentiment remain central to valuations; meanwhile, the data gap created by the government shutdown adds uncertainty. Private sector surveys indicate a slowing in activity, and Federal Reserve officials have warned against rapid easing of monetary policy.
