Bitcoin drops below $57,000 amid weak market sentiment
Bitcoin's (CRYPTO:BTC) price has fallen by 4.5% in the past 24 hours, dropping below $57,000 and briefly touching $55,600 before recovering to around $56,628.
Ethereum (CRYPTO:ETH) also experienced a significant decline, losing 6.4% and trading at $2,366.
Both cryptocurrencies have been affected by weakness in the US and Asian markets, which have seen substantial sell-offs due to poor economic data.
The cryptocurrency market saw a notable decline, with Bitcoin falling to $56,696 and Ethereum dropping to $2,366.
Analysts attribute these losses to weak economic indicators from the US, which have caused a wave of selling across financial markets, impacting both traditional and digital assets.
Peter Chung, Research Director at Presto, pointed out that weak ISM data from August in the US triggered significant selling activity, leading to a drop in Bitcoin prices.
Additionally, investors in Asia reacted to the poor performance of Asian markets, further amplifying the downturn.
Traditional markets were also affected, with Japan's TOPIX index falling by 2.7% and South Korea's KOSPI index losing 2.46%.
In the US, tech stocks such as Nvidia dropped sharply, recording a 9.5% loss.
Justin d'Aneth from Keyrock highlighted the interconnectivity between traditional and cryptocurrency markets, noting that the extended weekend holiday in the US exacerbated the downturn when trading resumed.
Investors are now focusing on the upcoming US non-farm payroll data, which is expected to provide more clarity on the Federal Reserve's interest rate outlook.
Augustine Fan of SOFA.org commented that this data will be crucial in understanding the extent of the economic slowdown, especially as September is anticipated to be a busy month for economic indicators.
The release of this data is seen as a key event that could influence market sentiment and future price movements in both cryptocurrency and traditional financial markets.
At the time of writing, the Bitcoin (BTC) price was $56,526.41.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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