Following Friday’s U.S. jobs report, there was a brief surge in cryptocurrency prices, but it quickly reversed in erratic trading.
After the important report, Bitcoin (BTC) surged to $57,000 earlier today, only to lose those gains and fall below $55,000. Over the last day, the biggest cryptocurrency saw a nearly 4% decline.
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Major altcoins including ether (ETH), solana (SOL), Ripple’s XRP (XRP), and cardano (ADA) all saw losses of 3% to 5% during the same period, indicating a widespread selloff. Over the course of the day, the CoinDesk 20 Index fell 2.7%.
According to CoinGlass data, the price swing caused almost $50 million in liquidations in just one hour on the cryptocurrency derivatives markets as leveraged traders—mostly longs betting on a sustained price advance—were caught off guard by the volatility.
Important U.S. equity indexes also experienced an early decline during their trading session, coinciding with the price action. A little over an hour after the opening bell, the broad-based S&P 500 fell 1.15%, while the Nasdaq Composite Index fell 1.9%.