Bitcoin price fell by 4.5% in the last 24 hours, dropping below $57,000. During the night, the red candle indicated a drop to $55,600. Afterwards, Bitcoin price recovered by $1,000, reaching $56,628. At the same time, Ethereum also lost 6.4% in value, trading at $2,366. Weakness in both US and Asian markets played a significant role in these declines.
Significant Drops in the Cryptocurrency Market
The cryptocurrency market experienced a significant shake-up in the last 24 hours. Bitcoin fell by 4.5% to $56,696, while Ethereum dropped by 6.4% to $2,366. Experts indicated that weak economic data from the US and selling pressure in Asian markets were behind the declines.
Presto Research Director Peter Chung noted that weak ISM data for August from the US triggered a wave of selling in financial markets, negatively affecting Bitcoin. Chung added that these data caused the drop in Bitcoin, with Asian-based investors reacting to weak Asian markets in the morning.
Selling Wave in US and Asian Markets
In addition to Bitcoin, traditional financial markets also saw sharp declines. Japan’s TOPIX index fell by 2.7% in the morning, while South Korea’s KOSPI index lost 2.46%. In the US, tech giants like Nvidia suffered a 9.5% loss in value.
The 24/7 trading nature of the cryptocurrency market means it is more affected by such volatile movements. Keyrock’s Justin d’Anethan emphasized that both traditional and cryptocurrency markets turned negative after the long weekend holiday in the US, leading to a sharper drop in Bitcoin.
Investors Focused on Data to be Released on Friday
Markets are currently focused on the US non-farm payroll data to be released on Friday.
The data will be particularly decisive for expectations regarding the Federal Reserve’s interest rates. Augustine Fan from SOFA.org stated that September will be busy and these data will confirm the degree of economic slowdown.
