Bitcoin Price Briefly Crashes to $11.2K After US Jobs Data Disappoints

Published on by Cointele | Published on

The price of Bitcoin dropped to $11,219 on Bitstamp on Aug.7 after the U.S. stock market declined.

The release of new job data caused the U.S. stock market to slump in mid-day.

Over the past several months, the price of Bitcoin saw relatively volatile movements ahead of new job data.

Data from Skew shows that Bitcoin has shown some correlation with stocks since April.

Since the stock market reacts strongly to unemployment data, BTC has typically followed the trend of stocks in the first week of the month.

Washington Center for Equitable Growth's economist Kate Bahn said many of the newly added jobs would likely pay less.

"We added more jobs than most people expected, but the gains really were disproportionately part-time workers. To me that means even if workers are coming back it's to jobs that pay less, and families will be worse off."

As the U.S. stock market dipped, major cryptocurrencies like Bitcoin and Ethereum's Ether saw a steep plunge.

The chances of countermeasures by China could increase, which might potentially affect stocks, and therefore Bitcoin.

The confluence of a delayed stimulus deal and the intensifying tensions between the U.S. and China could place pressure on both stocks and Bitcoin in the short term.