🚨Bitcoin Plunges to $61,500: August Gets Off to a Bad Start
✅Disappointing US employment figures rocked Wall Street on Friday, sending a domino effect through financial markets. The data significantly affected the values of crypto assets, including bitcoin.
🚨Worrying Jobs Report Reveals
✅The latest US jobs report, released on Friday, revealed worrying numbers that immediately shook stock markets . The Labor Department report revealed that the unemployment rate rose to 4.3% in July, its highest level since October 2021.
✅Although 179,000 jobs were created in June, July's figures show nonfarm payrolls grew by just 114,000. That's well below economists' forecasts of an addition of 175,000 jobs. That's fueling fears of an impending recession , especially with interest rates at 22-year highs making borrowing more expensive.
✅Analysts are divided on the long-term implications of the data. Some, like Grayscale’s Zach Pandl, wonder whether the economy is experiencing a soft landing or whether the recession has simply been delayed. That uncertainty is making markets particularly nervous, as the U.S. Federal Reserve could raise interest rates next month.
🚨Cascading effects on bitcoin and other crypto assets
✅The immediate response from the markets was a sharp drop. The Nasdaq suffered a 2.9% decline, sliding into a market correction after losing 10% from its peak last month. Similarly, the S&P 500 and the Dow Jones recorded declines of more than 2%, marking one of the worst trading sessions since 2022.
✅The panic in traditional markets quickly affected the crypto market. Bitcoin, in particular, fell by 4.4% in a matter of hours to reach around $62,500. Currently, the crypto asset is trading below $61,500. Altcoins like ether and solana also suffered significant losses, dropping by nearly 3% and more than 4%, respectively.
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