‘Extreme Fear’ and Panic at Fed Trigger Sudden $2 Trillion Crypto Price Crash – Bitcoin, Ethereum, BNB, Solana, XRP and Dogecoin Affected

Bitcoin
Bitcoin
and crypto – including the top ten coins Ethereum, BNB
BNB
XRP
XRP
and Dogecoin – have crashed following a stern warning from Goldman Sachs.

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The Bitcoin price has fallen to $50,000 per bitcoin, while the entire crypto market plunged below the $2 trillion mark amid fears that the US dollar is “on the verge of total collapse.”

After Coinbase's CEO announced a groundbreaking innovation in artificial intelligence last week, sentiment in the Bitcoin and crypto markets has shifted toward “extreme fear” as the market digests the latest U.S. jobs data that fell short of expectations and pushed the Bitcoin price below a key resistance level.

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“A key technical support level for Bitcoin price remains just above $54,000, but a price slide in the event of a volatility spike could see the price briefly drop below $53,000,” Alex Kuptsikevich, senior market analyst at FxPro, said in an emailed comment.

Earlier this week, legendary Bitcoin trader Arthur Hayes and analysts at Bitfinex predicted that the Bitcoin price could fall much further in the short term.

The Crypto Fear & Greed Index, a measure of crypto market sentiment, has fallen to a monthly low of 22, a sign of “extreme fear” and a level last seen during the August market crash.

Bitcoin price fell to just above $52,000 before rising back above $53,000. The rest of the top ten cryptocurrencies plunged along with Bitcoin price, with Ethereum, BNB, Solana, XRP and Dogecoin each losing between 5% and 10% in the past 24 hours.

The crash in Bitcoin price came as US jobs data showed that the economy added 142,000 new jobs in August, below economists' forecasts of around 161,000.

The weakening of the labor market has fueled fears that the US Federal Reserve has waited too long to cut interest rates and that the economy is therefore at risk of slipping into recession.

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Others believe that the Fed's upcoming rate cut – which is widely expected to start a rate-cutting cycle – could be a positive catalyst for Bitcoin price and the entire crypto market.

“The recent U.S. jobs results were a moment of truth for risky assets like Bitcoin, as the labor market is seen as the key sector that could influence the Fed's decision to cut rates this month,” said Leena ElDeeb, research analyst at 21Shares, in an emailed comment.

“With a slightly rising unemployment rate, investors traded positively, pricing in looser monetary policy on September 18. A rate cut bodes well for risk-on assets, which have historically benefited from growing investor demand as borrowing costs fall. If a hard economic landing is avoided, Bitcoin and the broader market could see appreciation in the fourth quarter driven by this liquidity dynamic.”