The cryptocurrency markets experienced significant volatility following the release of the U.S. jobs report on Friday. Bitcoin (BTC) initially jumped to $57,000 but quickly reversed course and tumbled below $55,000, ending the day down nearly 4% over the past 24 hours. "The price swing liquidated nearly $50 million of leveraged derivatives positions across all cryptocurrencies in one hour," according to CoinGlass data.
The selloff was broad-based, with major altcoins such as ether (ETH), solana (SOL), Ripple's XRP (XRP) and cardano (ADA) posting 3%-5% losses over the same period. The CoinDesk 20 Index, which tracks the top crypto assets, was down 2.7% over the day.
The volatility in the crypto markets mirrored the movement in key U.S. equity indexes, with the Nasdaq Composite Index down 1.9% and the S&P 500 declining 1.15% a bit more than one hour after the opening bell. Analysts suggest the jobs report data may have set the stage for a 25 basis point rate cut by the Federal Reserve, contributing to the market turmoil.
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