Bitcoin Falls Below $56K as Asian Stocks Plunge – Bitcoin News 2024

Bitcoin (BTC) temporarily fell to $55,500, its lowest level since August 8, reversing almost all of the gains of the past month. The Institute for Supply Management (ISM) manufacturing index fell for the fifth consecutive month in August, rebounding slightly from July but still below the 50 threshold.

BTC fell to its lowest level since early August on Wednesday morning in Asian trading following heavy losses across U.S. and Asian stock markets, sending some major stocks down nearly 10%. BTC fell to $55,500, its lowest level since Aug. 8, reversing almost all of its gains over the past month. The broader market was tracked by CoinDesk 20 (CD20)a liquidity index that tracks the largest tokens by market capitalization, fell nearly 6%. Major tokens such as 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 as much as 3.5% on Tuesday, kicking off a historic September of losses as weak manufacturing data stoked fears of an economic slowdown. The volatility spread to Asian markets as Japan’s Nikkei fell more than 4% in the hours after the open — adding to the shockwaves from last month’s yen carry trade unwind.

The Institute for Supply Management’s (ISM) manufacturing index fell for a fifth straight month in August, rebounding slightly from July but remaining below the 50-point mark. The index is a monthly measure of the level of economic activity in the U.S. manufacturing sector and is seen as a sign of the broader economy.

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