Bitcoin fell to its lowest level since early August on Asian exchanges on Wednesday morning after sharp losses in U.S. and Asian stock markets, sending some major stocks down nearly 10%.
BTC briefly fell to $55,500, its lowest since August 8, erasing nearly all of its gains over the past month. The broader market as tracked by the CoinDesk 20 (CD20), a liquid index tracking the largest tokens by market cap, fell nearly 6%. Major tokens Solana (SOL) and ether (ETH) fell more than 7%, leading the losses.
U.S. stocks tracked by the Nasdaq 100 and S&P 500 fell 3.5% on Tuesday to begin a historically bearish September month as weak manufacturing data revived concerns about an economic slowdown. The move spread to Asian markets as Japan's Nikkei fell more than 4% within hours of the open, adding to the jolts from last month's unwinding of yen trading.
The Institute for Supply Management's August manufacturing index fell for the fifth straight month, rebounding from July but remaining below the 50 threshold. The index is a monthly measure of economic activity in the U.S. manufacturing sector and is considered a sign of the broader economy.
