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.
Read more: U.S. Added 142K Jobs in August, Likely Setting Stage for 25 Basis Point Rate Cut
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%.
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