Bitcoin's (BTC) bloodbath: Danger bells are ringing

Bitcoin, fell by 5 percent in the last 24 hours to below $56,000 due to the selling wave in US stocks and the impact of the Asian stock market.

Bitcoin, as of the time of writing, is changing hands at $56,200, while Ethereum is trading at $2,380, experiencing a 7% decrease. However, the cryptocurrency market has lost 4.7% of its value in the last 24 hours, disappointing investors.

Data from the US and Asian stock markets shook Bitcoin (BTC)

Peter Chung, research director at Presto Research, said the decline stemmed from the Institute for Supply Management (ISM) data, leading to a selling wave in all risk assets. The US ISM index rose 0.4 points to 47.2% in August from July. The S&P 500 fell 1.8% two hours after Wall Street opened, while the Dow Jones dropped 563 points, and the Nasdaq Composite index experienced a 2.9% loss.

In the morning session, Japan’s TOPIX index fell by 2.7 percent. South Korea’s KOSPI index also lost 2.46 percent in a short time. With the addition of bad data from the US, the Asian side, Bitcoin’s decline became inevitable. The leader of cryptocurrencies, which has been fluctuating between $58,000 and $60,000 for a while, caused panic in the market by dropping to $55,500.

Factors such as the downward trend of the US and Asian stock markets or the release of poor macroeconomic data could push the BTC price even lower. In such a scenario, a pullback to the range of 48,000 – 50,000 dollars can be expected. .

This article does not contain investment advice or recommendation. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.