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Bitcoin dropped on Thursday to levels not seen in more than six months, as investors appeared to pull back exposure to riskier assets and weighed the prospects of another Federal Reserve rate cut next month.
The flagship digital currency fell to as low as $86,390, its lowest level since April 21. It last traded at $86,965.
The release of stronger-than-expected U.S. jobs data raised questions about whether the central bank would lower its benchmark overnight rate. The U.S. economy added 119,000 in September, well above the 50,000 economists polled by Dow Jones expected.
That report sent the probability of a December rate cut to around 40%, according to the CME Group’s FedWatch tool.
Bitcoin’s pullback also led stocks lower, even after a blockbuster Nvidia earnings report. Traders who are heavily invested in AI-related stocks tend to also hold Bitcoin, linking the two trades.
Bitcoin’s price has largely slid since a rash of cascading liquidations of highly leveraged crypto positions in early October.
