Bitcoin dropped below 95,000 USD following strong U.S. Employment figures, leading to a risk-averse sentiment in the market. The U.S. Labor Department reported 8.1 million job vacancies, surpassing the expected 7.74 million. This created a risk-off atmosphere, pushing bond yields up and causing investors to divest from risk-sensitive assets.

Bitcoin’s sharp drop led to 206 million USD in liquidations in just one hour. This volatility also extended to stock markets, showcasing Bitcoin’s increasing correlation with broader market dynamics. The Nasdaq and S&P 500 experienced notable vulnerability, reflecting Bitcoin’s connection with the financial sector during uncertain economic periods.

QCP Capital highlights the importance of the upcoming Federal Open Market Committee (FOMC) decision and Non-FARM Payroll data on Bitcoin’s price. Analysts suggest this price decline may be temporary, with a bullish rally anticipated as Optimism may increase when President-elect Donald Trump takes office. This could drive BTC’s recovery.