Cryptocurrency Prices Drop as Economic Data Sparks Rate Cut Speculation
TL;DR
- $BTC fell 1.5% to $57,800, while $ETH dropped 3% to $2,442, marking a seven-month low amid a broader market slump.
- The ISM Manufacturing PMI report revealed ongoing contraction, influencing traders to adjust expectations for Federal Reserve interest rate cuts.
As the U.S. trading day began post-Labour Day, cryptocurrencies faced a significant decline. $BTC decreased by 1.5%, settling at $57,800, while $ETH experienced a sharper drop of 3%, reaching $2,442, its lowest point in seven months. This downturn coincided with a general slump in stock prices, particularly affecting the Nasdaq and S&P 500 indices.
The CoinDesk 20 Index, which tracks various cryptocurrencies, was down by 1%. However, some assets, like lumens and litecoin, managed to post modest gains. Traders remained cautious as they reacted to the latest economic indicators and stock market movements, particularly following the ISM Manufacturing PMI report that indicated ongoing contraction in the manufacturing sector.
In light of the soft economic data, traders increased the likelihood of a 50 basis point rate cut in September to 39%, up from 30% the previous day. The upcoming employment report for August is expected to be crucial, with economists predicting a rebound in job gains to 160,000 from July's disappointing 114,000.
What are your thoughts on the current state of the crypto market?
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