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Bitcoin prices experienced a decline following the recent release of the US PMI data from S&P Global, which suggested that the economy contracted last month. The manufacturing PMI index fell, indicating instability in the market as economic indicators were announced, causing fluctuations in Bitcoin values. What Impact Does US Data Have on Cryptocurrency? While the PMI figures are not the only factor contributing to the recent downturn, they play a crucial role in revealing recession fears. The decline in prices was also fueled by escalating tensions between Iran and Israel, leading to missile launches that adversely affected both stock and cryptocurrency markets. Are Cryptocurrencies Affected by Economic Contraction? Yes, this economic contraction has resulted in poor performance across various stocks, with significant drops noted in Bitcoin and other cryptocurrencies. Following the PMI report, all major altcoins by market cap witnessed decreases in their values. The disappointing PMI data has heightened concerns ahead of upcoming employment statistics due on Friday. The prospect of economic contraction can erode investor confidence, instigating a wave of selling in crypto markets. Historically, declines in risk assets after Federal Reserve interest rate cuts are often linked to fears of recession, underscoring the importance of monitoring these economic signals closely. Bitcoin and cryptocurrencies are directly affected by US economic indicators. Geopolitical tensions can exacerbate market declines. Future economic data releases may influence investor behavior. Bitcoin’s decline, prompted by the PMI data, raises concerns about potential long-term sell-offs if recession fears deepen. While the current downturn isn’t solely attributed to economic contraction, such developments could lead to significant shifts in market dynamics. Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research. Source: https://en.bitcoinhaber.net/bitcoin-prices-drop-after-us-economic-data

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Filed under: News - @ October 2, 2024 12:21 am