- BTC’s price bounces remain shallow and brief as concerns about the U.S. economy linger.Crypto weakness may be a red flag for traditional risk assets, one analyst said.
On Wednesday, the most valued cryptocurrency dropped approximately 2% to reach $56,700, struggling to maintain a position above $58,000. Earlier on August 25, its price surpassed $65,000 but has been decreasing since then, showing brief and shallow increases that indicate a consistent “sell-when-it-rises” attitude among traders
Fournier stated that recent economic indicators hint towards the possibility of a recession that should not be overlooked. Specifically, the ISM manufacturing index fell short by 0.5%, and the number of job openings stands at 7.7 million, which is lower than the projected 8.1 million
Considering the present financial instability and the possibility of reduced funds availability, it’s advisable to lower your involvement with Bitcoin and hold off on further investments until a more favorable opportunity arises, as Fournier suggested
On Wednesday, the U.S. Bureau of Labor Statistics revealed the Job Openings and Labor Turnover Survey (JOLTS), indicating that there were around 7.67 million job openings on the final business day in July. This figure fell short of the anticipated 8.1 million positions predicted by the market and was also lower than the revised June figure, which showed 7.9 million jobs, as reported by data source FXstreet
Currently, the Federal Reserve’s Beige Book, which provides an overview of economic conditions, has painted a rather pessimistic picture, suggesting a weakening job market as described by Julia Pollak, ZipRecruiter’s chief economist
On Tuesdays, it was indicated by the Institute for Supply Management (ISM) manufacturing PMI that manufacturing activities were still contracting in August, which sparked fears of economic growth reminiscent of those that had previously alarmed risk assets and cryptocurrencies around the beginning of last month
The subpar data strengthens the predictions for Federal Reserve rate reductions; however, it hasn’t provided a bottom yet for Bitcoin’s pricing
According to Alex Kuptsikevich, a senior market analyst at The FxPro, the vulnerability observed in Bitcoin could potentially serve as a warning sign for conventional investment assets
“Kuptsikevich suggests that the vulnerabilities seen in cryptocurrencies might be a reflection of a narrow risk tolerance, and it’s possible other markets could soon mimic this trend. He points out that Bitcoin’s resilience, despite the recent dollar index weakness, has been short-lived.”
Bitcoin has been decreasing for nine out of the past eleven days, with its efforts to stay above the 200-day average leading to a stronger sell-off. This trend continued into Thursday morning as the price is still testing the lowest levels seen over the last four months, according to Kuptsikevich’s email to CoinDesk
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2024-09-05 14:40