Bitcoin Approaches $54,000 as August NFP Report Triggers Liquidations

• The US releases NFP jobs data for August, which again came in below expectations.
• The NFP report has historically affected the price of Bitcoin and ultimately the crypto market.
• The price of Bitcoin fell below $55,000, causing liquidations of almost $82 million.
• Kaito AI data suggests that bearish pressures for BTC are still low.

Bitcoin (BTC) fell below the $55,000 level on Friday as the overall crypto market saw declines following the release of the August Nonfarm Payrolls (NFP) report. With unemployment falling to 4.2% as expected, eyes now turn to the Federal Reserve (Fed) meeting later in the month. Meanwhile, key data shows that the current bearish trend in the crypto market does not reflect aggressive selling pressure.

Bitcoin Drops Lower As NFP Report Hits Crypto Market

Bitcoin sent the entire cryptocurrency market into a downtrend on Friday following the release of the US NFP report for August.

The NFP report measures the change in the number of employed workers in the US, excluding farmers. The report is considered a vital indicator of the state of the economy and has historically had an impact on the price of Bitcoin and the crypto market as a whole.

The August NFP report said August saw an addition of 142,000 new jobs, which was more than 11% below the consensus figure of 160,000. Also, employment from previous reports in both June and July were revised much lower, giving the impression that the labor market is starting to hurt.

Following the release of the NFP data, Bitcoin price fell 4.7% to below $54,000, its lowest level since early August. The drop resulted in nearly $82 million in BTC liquidations, according to Coinglass data.

In addition, the further fall in the price of Bitcoin caused an overall decline in the entire crypto market, which fell by 4.7% in the last 24 hours.

The meme coin market is down nearly 6%, with major meme tokens Dogecoin (DOGE) and Pepe (PEPE) down 7% and 4%, respectively.

AI tokens also had their fair share of declines on the day, with the market cap of the entire AI token category falling 7% over the past 24 hours.

Despite the overall market decline, Kaito AI suggests that bear market mentions for BTC are still low, indicating that the current bear pressure is not too strong.