Why Bitcoin Dropped Below $54,000

Bitcoin's price crashed below $54,000 on September 6 due to a combination of weak macroeconomic data and ongoing sell-offs. Here's what caused the drop:

The U.S. labor market added fewer jobs than expected (142,000 vs. the 164,000 forecast), sparking concerns over the economy's stability. Revised July and June reports also showed lower job growth than initially reported.

With doubts about the strength of the U.S. economy, investors are avoiding riskier assets like Bitcoin. The cryptocurrency market has felt increased volatility, with some experts, like Arthur Hayes, expecting further drops below $50,000.

Hopes for a Federal Reserve rate cut (which could have boosted Bitcoin) are now fading, making a cut at the upcoming FOMC meeting less likely. This has added pressure to Bitcoin's price.

Currently, Bitcoin is trading at around $54,150, down nearly 4% in the last 24 hours.