Bitcoin fell sharply during the night and fell below $56,000. While the declines in US markets and Asia also drew attention, experts point to the low US PMI data as the reason. Friday's nonfarm payrolls and unemployment data will also be critical in terms of price action.
World markets fell in a correlated manner again. Bitcoin fell below $56,000 overnight, while Nasdaq closed the day with a 3.1% decline and S%P 500 fell by 2.1%. In Asian markets, Japan and South Korea also closed in the red.
PMI data cited as reason
Experts attribute the recent declines to the Manufacturing Purchasing Managers Index data announced yesterday in the US, which came in below expectations. The index score, announced as 46.8 in July, was 47.2 for August, but expectations were 47.5. The fact that the index score in the manufacturing sector is below 50 indicates that this item, which makes up 10 percent of the US economy, is shrinking. This rate, also known as the ISM PMI, has always been below 50 for the last 5 months.
The declines particularly affected technology stocks. Many stocks, especially Nvidia, experienced serious declines. Nvidia lost $280 billion in market value during the declines. The news of an investigation opened by the US Department of Justice following the declines also drew attention.
Bitcoin companies also fell hard
MicroStrategy, the company with the most Bitcoin in the world, fell by more than 7.5%, while mining companies, which have been falling continuously recently, added new losses. RIOT fell by 10%, and Marathon by 9%. The stock of Coinbase, the largest cryptocurrency exchange in the US, also fell by 7.6%. COIN is trading at $169.
The Japanese said “increase” again
It is worth noting that the declines in the markets were also affected by the statements of the Bank of Japan Governor Kazuo Ueda that they would continue to increase interest rates. The institution's surprise interest rate hike in August caused a short-term panic in the financial markets, and during this panic, Bitcoin fell to $49,000.
Friday is also important
Important data will be released on Friday, the last trading day of the week. US non-farm payrolls and unemployment data will determine the course of the stock market, as well as cryptocurrencies. The employment figure announced as 114 thousand in July is expected to be 160 thousand in August, and the unemployment rate announced as 4.3% in July is expected to drop to 4.2%.
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