By Chris Hollingworth 
Bitcoin (BTC) saw a decline to new monthly lows as the Wall Street session opened on April 3, driven by US unemployment data adding pressure on risk assets. The 4-hour chart of BTC/USD showed a dip below $82,000 for the first time since the beginning of the month, according to data from Cointelegraph Markets Pro and TradingView.
Initially, Bitcoin surged to $88,580 following the announcement of reciprocal trade tariffs by the US government. However, the market sentiment shifted as the impact of the measures became apparent, causing Bitcoin to lose momentum. Subsequently, US stocks also took a hit, with the S&P 500 dropping over 4% on the day.
The S&P 500’s significant decline of 3.7% marked its largest daily drop since the pandemic lockdowns in 2020. The market turmoil was further exacerbated by the release of US initial jobless claims data, which came in slightly below expectations at 219,000 versus the anticipated 228,000, as reported by the US Department of Labor (DoL).
The stronger labor market data traditionally correlates with weaker performance in risk assets, as it implies a potential for tighter financial conditions in the future. Despite this, data from CME Group’s FedWatch Tool indicated market expectations leaning towards an interest-rate cut by the Federal Reserve at the upcoming June meeting of the Federal Open Market Committee (FOMC).
Market analysts expressed concerns about the bearish price action in Bitcoin, foreseeing a potential continuation of the downward trend for the next 3-6 months. As Bitcoin approached the $80,000 support level, traders remained cautious about the short-term outlook.
Glassnode, an onchain analytics firm, highlighted a concerning development known as a “death cross” in Bitcoin, indicating a convergence of two midterm moving averages and signaling weakening momentum. This pattern has historically preceded bearish trends lasting several months.
In summary, recent market events, including the US unemployment data and trade tariff announcements, have contributed to the downward pressure on Bitcoin and risk assets. Traders and investors are closely monitoring the evolving market dynamics and preparing for potential further volatility in the coming months.
(Note: This article is for informational purposes only and does not offer investment advice. Readers are encouraged to conduct their own research and analysis before making any financial decisions.)
