The Bitcoin price is experiencing a sharp decline today, partly due to broader economic uncertainties in the United States.
Key figures have just been released from the United States. Jobless claims for the week ending July 27 rose to 249,000, compared to an expected 235,000.
In addition, a weak ISM manufacturing index of 46.8 points to a deterioration in the country’s economic situation. These developments have had negative effects on both the crypto market and financial markets, leading to widespread investor concerns.
Cry or laugh?
“The economic data continues to point to a recession this morning,” said Chris Rupkey, chief economist at FWDBONDS.
“The stock market doesn’t know whether to laugh or cry because even though three Fed rate cuts are possible this year and 10-year bond yields are falling below 4.00%, the winds of recession are blowing hard.”
Crypto market turns dark red
Following the recent economic figures, the crypto market has fallen significantly. Bitcoin fell by 5%, while Ethereum saw a decline of 5.4%. XRP was hit even harder, losing a whopping 10% of its value in a single day. These losses reflect widespread market concerns about a potential recession and general economic uncertainty.
Stock markets are falling hard
In addition to the crypto market, stock markets also reacted negatively in general. While companies such as Meta Platforms posted a 5.5% increase on the back of positive quarterly results, other companies such as Arm Holdings and Moderna saw significant losses of 15% and 19% respectively. These declines were the result of weak outlooks and disappointing revenue expectations.
The stock market declines were further exacerbated by broader economic concerns and potential policy changes by the Federal Reserve. After the figures were announced, the S&P500, for example, fell by around 1 percent. The AEX also suffered, posting a loss of 1.47%.
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Source: https://newsbit.nl/bitcoin-koers-crasht-te-midden-van-economische-onzekerheid/
