BTC/USD: Bitcoin Slips to 1-Month Low After August Jobs Number Rattles Crypto Market

Digital assets got knocked by a weaker-than-expected nonfarm payrolls report. Now, Bitcoin needs an even stronger catalyst to reel itself out of slump.

• Bitcoin BTCUSD pulled back Friday and remained under pressure over the weekend to open the new week under $55,000 per coin. The OG cryptocurrency got smacked in the face by fresh economic data out of the US — jobs didn’t increase as expected and this sent crypto traders scrambling. Nonfarm payrolls for August arrived at a cool 142,000, below the 164,000 expected.
• The news ushered in new uncertainties in the already challenged crypto landscape. Now, recession fears loom over the digital asset space — slowing job growth suggests a contracting economy and this can lead to a crunch in liquidity. In other words, market participants might choose to keep that cash for rainy days instead of jamming it into an immersive but amorphous market that is nevertheless making progress on the adoption front.
• Speaking of adoption, the spot Bitcoin exchange-traded funds logged out of last week with a net outflow of $707 million, i.e. the difference between the money flowing in and out of the investment vehicles. Ethereum, the second largest token, didn’t do much better either. Its own nine Ether ETFs shed over $91 million in net outflows. Ether prices dipped under $2,150 on Friday but managed to recoup some losses and kicked off Monday trading above $2,250 per coin.