Bitcoin Drops Below $86,000

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Bitcoin extended its decline to a new local low on Thursday, driven by macroeconomic concerns after a robust US jobs report indicated lingering inflationary pressures. The cryptocurrency fell over 7% to $85,700, its lowest level in nearly seven months and a 32% drop from its October peak.

The sell-off was catalyzed by data showing the US economy added 119,000 jobs in September, far exceeding expectations.

According to Vincent Liu of Kronos Research, this “stronger-than-expected data dampens expectations for a December rate cut,” causing the market to recalibrate risk. The broader crypto market fell in tandem, with the Fear & Greed Index reflecting “extreme fear.”