US Data and Cryptocurrency!!!

While the PMI data is not the sole reason for today’s decline, it was significant in understanding recession concerns. The immediate cause of the decline was the escalating tension between Iran and Israel, coupled with the launch of hundreds of missiles. Geopolitical tensions negatively impact both stock and cryptocurrency markets, leading to declines, as observed since the onset of the Russia conflict.

Returning to the US data, the latest Purchasing Managers’ Index (PMI) from S&P Global was reported at 47.3 for September, down from 47.9 the previous month. A figure below 50 indicates economic contraction, while a figure above 50 points to expansion in the private sector.This contraction data negatively affected the performance of many stocks.

A noticeable drop was observed in the prices of Bitcoin and other cryptocurrencies. All major altcoins by market capitalization lost value following the release of this data.