- Bitcoin dropped below $82,000 to new monthly lows as US unemployment data pressured risk assets.
- US stocks plummeted with the S&P 500 falling nearly 4%, erasing approximately $3 trillion in market cap.
- Analysts suggest Bitcoin may face a bearish trend lasting 3-6 months following an onchain “death cross” pattern.
Bitcoin fell below $82,000 on April 3, hitting new monthly lows as US unemployment data intensified pressure on risk assets. The cryptocurrency’s decline coincided with a significant drop in US stock markets during the Wall Street trading session, with the S&P 500 tumbling over 4% on the same day.
Data from Cointelegraph Markets Pro and TradingView confirmed BTC/USD dipped below $82,000 for the first time since the beginning of April. Despite initially surging to $88,580 following the US government’s announcement of reciprocal trade tariffs, Bitcoin quickly lost momentum as markets processed the stronger-than-expected measures.
US initial jobless claims came in below estimates at 219,000 versus the anticipated 228,000, according to the US Department of Labor. This stronger-than-expected labor market data typically correlates with weaker performance for risk assets, as it suggests policymakers may maintain tighter financial conditions longer. Nevertheless, CME Group’s FedWatch Tool showed markets still favored an interest rate cut from the Federal Reserve at its June meeting.
Market Reactions Highlight Broader Economic Concerns
Trading resource The Kobeissi Letter noted on X that the day’s decline put the S&P 500 "on track for its largest daily decline since the 2020 pandemic lockdowns," adding that the index had erased "nearly $3 TRILLION in market cap" since the previous day’s after-hours high.
Market commentator Byzantine General indicated that short positions were increasing across major cryptocurrency pairs, suggesting limited upside potential as tariff responses were likely forthcoming. "I could see a stop hunt below the local lows before a pump to squeeze shorts, then probably more chop that slopes downward," the analyst stated.
Technical Indicators Signal Potential Extended Bearish Trend
Onchain analytics firm Glassnode identified a concerning technical pattern for Bitcoin, reporting a new "death cross" where the 30-day volume-weighted price crossed below the 180-day measurement. According to their analysis, this pattern has historically preceded bearish trends lasting between 3-6 months.
Earlier in the week, Glassnode had observed that recent speculative sell-offs had been significantly smaller than volumes typically associated with blow-off Bitcoin Price tops, suggesting the current market dynamics might differ from previous cycles.
Popular trader Roman characterized the price action as "Stair step up then elevator down," highlighting the rapid decline following the gradual earlier increases.
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