Why Bitcoin Dropped as Fed Cuts Loom?

Bitcoin saw a sharp decline overnight and fell below $56,000. While the declines in the US and Asian markets are also attracting attention, experts point out that US manufacturing industry data is bearish. Friday’s non-farm payrolls and unemployment data will also be critical in terms of price trends.

Global markets fell again in a Korean fashion. While Bitcoin fell below $56,000 overnight, the Nasdaq closed the day down 2.1% and the S%P 500 down 3.1%. In Asian markets, the close was also negative in Japan and South Korea.

ISM data was shown as the reason

Experts, on the other hand, attribute the recent declines to the Manufacturing Purchasing Managers’ Index data, which was released yesterday in the US and fell below expectations. Although the index score, which was announced as 46.8 in July, was 47.2 for August, expectations were for 47.5. The fact that the index score for the manufacturing sector is below 50 indicates that this sector, which constitutes 10% of the US economy, is shrinking. This index, also known as the ISM PMI, has consistently been below 50 for the past 5 months.

The declines hit technology stocks especially hard. There were significant declines in many stocks, especially Nvidia. Nvidia lost $$ 280 billion of its market value in the declines. Following the declines, news of the investigation opened by the US Department of Justice also attracted attention.