Bitcoin dives again after disappointing jobs report, ending midweek rally

Bitcoin was barreling towards its best week in a month, but on Friday that momentum quickly dissipated. Since Wednesday, the largest cryptocurrency slumped roughly 7% to its current price of about $69,000, according to Binance. The downturn occurred following a lower than unexpected jobs report, spooking investors in the traditional stock market and in digital assets. 

“The jobs number impacted all risk-on assets,” said Boris Alergant, head of strategic initiatives at Babylon. “During sell-offs like this, correlations tend to converge and assets move down in unison.”

The pullback for Bitcoin is part of a months-long slide for the crypto industry. Many expected the industry to flourish because of President Donald Trump’s friendly stance toward the sector. Yet, since October, the original cryptocurrency is down roughly 46% from its all-time high of $126,000. 

Friday’s job report did not do the crypto industry any favors. Unemployment rose and jobs were cut more than expected. Other macroeconomic factors are weighing heavily on digital assets, namely the escalating conflict in the Middle East, which President Trump recently described as having “no time limits.” The conflict has skyrocketed gas prices, also contributing to concern among investors. 

The major stock indexes mirrored Bitcoin, rallying in the middle of the week only to sputter on Friday morning. The S&P 500, for example, dropped about 2% following the release of the most recent job numbers after a brief surge on Wednesday. 

Other cryptocurrencies also dropped as the week drew to a close. Ethereum is down roughly 5% since Thursday to its current price of about $1,970, and Solana is down roughly 5% during that time to its current price of about $85, according to Binance.

One analyst says that things could get worse before they get better. “If the week closes roughly as the market looks now, that would not be a very positive signal,” said Alex Tsepaev, chief strategy officer at B2Prime. “In that case, the price could move lower, and by lower I mean a possible retest of the $60,000 range per Bitcoin.”

This story was originally featured on Fortune.com