Crypto Market Crashes 2.6% Amid US Jobs Report, Blast Shutdown, and ETF Outflows
The global cryptocurrency market cap has taken a hit, plummeting 2.6% in the last 24 hours to $2.95 trillion. This decline is attributed to a combination of factors, including a weak US jobs report, the shutdown of the Blast Layer 2 network, outflows of ETF money, and significant liquidations totaling $379.95 million. Bitcoin, Ethereum, and XRP are all in the red, with Bitcoin's price dropping 2.0% to $84,679.56.
The US jobs report, which showed that US employers added just 29,000 jobs in September, was a major contributor to the market's downturn. This was a significant disappointment, as markets had expected 90,000 jobs to be added. The unemployment rate also rose to 4.2% from 4.1%, further exacerbating the market's decline.
Meanwhile, the Blast network, which was an Ethereum Layer 2 network, announced its shutdown due to financial constraints. This news has chipped away at confidence in the Layer 2 space, with users having until October 26 to move their funds to Ethereum mainnet.
ETF outflows and liquidations have also contributed to the market's decline. SoSoValue data shows that spot Ethereum ETFs saw a $17.25 million net outflow in a single day, while CoinGlass reports 92,042 traders got liquidated in 24 hours, totaling $379.95 million.