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Bitcoin’s price has recently declined to around $50,000 per bitcoin, contributing to the overall cryptocurrency market’s drop below the $2 trillion mark. This downturn is happening amidst growing concerns that the U.S. dollar is on the brink of a significant collapse.

Following a groundbreaking AI revelation by Coinbase’s CEO last week, the mood in the bitcoin and cryptocurrency market has shifted dramatically to “extreme fear.” This sentiment change comes as the market processes the latest U.S. jobs report, which fell short of expectations and pushed the bitcoin price below a crucial resistance level.

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According to Alex Kuptsikevich, a senior market analyst at FxPro, a key technical support level for bitcoin remains slightly above $54,000. However, he warns that a spike in market volatility could cause the price to temporarily dip below $53,000. Bitcoin recently fell to just over $52,000 before bouncing back above $53,000. Other top ten cryptocurrencies like Ethereum, BNB, Solana, XRP, and Dogecoin also suffered significant losses, each declining between 5% and 10% within the last 24 hours.

The recent bitcoin price crash coincided with U.S. jobs data revealing that only 142,000 new jobs were added in August, falling short of economists’ predictions of around 161,000. This slowdown in the job market has stoked fears that the Federal Reserve has delayed too long in cutting interest rates, potentially pushing the economy towards a recession.

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Some experts believe that the anticipated Federal Reserve interest rate cuts could serve as a bullish catalyst for bitcoin and the broader crypto market. Leena ElDeeb, a research analyst at 21Shares, noted that the recent U.S. labor market results were crucial for risk-on assets like bitcoin since they could influence the Fed’s decision to cut rates this month.

With a slight improvement in the unemployment rate, investors responded positively by factoring in a more relaxed monetary policy expected on September 18. Historically, rate cuts have benefited risk-on assets by expanding investor appetite due to lower borrowing costs. If the economy avoids a severe downturn, bitcoin and the wider cryptocurrency market could experience appreciation in the fourth quarter, driven by these favorable liquidity conditions.