The Bitcoin price has dropped by several percent over the past 24 hours and is currently trading at $56,600, while US stocks and the Asian stock market are also falling sharply.
According to Peter Chung of Presto Research, the declines are mainly due to weak macroeconomic data from the United States.
Weak economic data from America
That weak data came in the form of the ISM Manufacturing Index, which came in at 47.2 points. That marked a 0.4 point increase from July, but was still 0.3 points lower than expected.
Judging from the general trend of this health indicator for the American industry, there is not much going on yet. There does not seem to be any immediate misery, although a score below 50 points does indicate that there is contraction (shrinkage) for the industry.
As a result, the Bitcoin price fell by 4% over the past 24 hours. That’s quite a bit, but not too bad compared to the 17% drop we saw on August 5th.
Peter Chung says the same: “Overall, the 4% decline is quite modest when you look at the extent of declines in traditional financial markets.”
Nvidia loses 9.5%
For example, if we look at the big Nvidia in the United States, we see a loss of 9.5% on the boards. Even Bitcoin can’t match that and that’s special.
Usually we see that Bitcoin does much worse than stocks when there is a red day. Now that is not the case and the declines of Bitcoin are therefore less severe than those on the stock markets.
The next few days look to be crucial for Bitcoin and the rest of the market. That’s when we’ll get a ton of new data on the US labor market. If it turns out better than expected and doesn’t point to a recession, that would be good news for the financial markets.
After all, interest rate cuts are coming and if they are accompanied by a healthy economy, then that is bullish in theory. Is there a recession coming? Then it is questionable what we have from the interest rate cuts.
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Source: https://newsbit.nl/bitcoin-koers-daalt-45-tot-onder-57-000/
