In a significant downturn, the price of Bitcoin plummeted below $54,000 per coin on Friday, marking its lowest value since August 5th. The drop comes as the latest data from the US Labor Department reveals that hiring in the country fell short of expectations, sparking concerns about the strength of the American economy.

According to CoinGecko, the largest digital asset by market cap is currently being traded at $53,829, reflecting a decline of almost 5% over the past 24 hours. This downward trend extends the cryptocurrency's overall weekly dip to 8%, leaving investors and market analysts closely monitoring the situation.

The decline in Bitcoin's price follows the release of labor market data by the US Labor Department, which indicated that the economy added 142,000 jobs, falling short of the expected 160,000. Simultaneously, the unemployment rate experienced a slight decrease from 4.3% to 4.2%. This underwhelming report has led to concerns that the US economy may be weaker than previously believed.

The weak jobs report also had a ripple effect on other risk assets, leading to a sell-off in the tech stocks market. The S&P 500 saw a 1% decrease, while the Nasdaq experienced a nearly 2% drop. It appears that Bitcoin and other cryptocurrencies are increasingly mirroring the movements of US equities, with their value swinging based on any indications from the Federal Reserve regarding interest rate decisions.

Furthermore, Ethereum, the second-largest cryptocurrency by market cap, faced losses of nearly 4% over the past 24 hours, currently standing at $2,282. Other major coins and tokens also experienced similar declines over the same period, with meme coin Dogecoin losing 5% of its value, bringing it to $0.093. XRP, another prominent cryptocurrency, shed 4% and now stands at $0.52.

Notably, Bitcoin is now positioned nearly 27% below its all-time high of $73,737 reached in March after spot ETFs received historic approval, leading to an influx of capital into the cryptocurrency sector. As Bitcoin continues to face volatility, investors and analysts remain cautious as they navigate the uncertain economic landscape.

The future trajectory of Bitcoin and the wider cryptocurrency market will likely depend on various factors, including any future developments in the labor market, economic indicators, and the Federal Reserve's decisions on interest rates. With eyes on the cryptocurrency sector, market participants eagerly await further updates to gain insights into the potential movement of digital assets in the coming days.