Crypto Markets Tumble As U.S. PMI Data Reignites Growth Fears

Cryptocurrencies plunged in the past 24 hours amidst renewed concerns about growth in the U.S. economy. The ISM Manufacturing PMI data from the U.S. on Tuesday that revealed a larger-than-expected decline in the factory sector and a fifth consecutive month of decline in activity weighed on market sentiment. Massive outflows from Bitcoin Spot ETF products in the U.S. on Tuesday as well as the sell-off in the tech sector also contributed to the crypto market’s weakness. Bitcoin touched a low of $55,673 and Ether touched a low of $2,313 in the past 24 hours.

The ISM manufacturing PMI for August showed 47.2, versus 46.8 for July and market expectations of 47.5. A reading below 50 indicates contraction.

Data released by Farside Investors showed a massive jump in outflows from Bitcoin Spot ETF products in the U.S. on Tuesday. Outflows increased to $288 million from $176 million on the previous day. None of the ETFs recorded positive inflows on Tuesday. Fidelity Wise Origin Bitcoin Fund (FBTC) topped with outflows of $162 million. Grayscale Bitcoin Trust (GBTC) followed with outflows of more than $50 million. Ark 21Shares Bitcoin ETF (ARKB) recorded outflows of $34 million whereas Bitwise Bitcoin ETF (BITB) saw outflows of $25 million.

Market sentiment was also weighed down by anxiety ahead of the release of the monthly report on job openings and labor turnover due on Wednesday morning. The report which serves as a demand-side indicator of labor shortages at the national level is expected to reveal the strength of the labor market ahead of the more keenly watched non-farm payrolls report due on Friday. The Fed’s renewed focus on the labor market in its interest rate strategy also boosted the significance of the data release. Markets expect the number of job openings to edge down to 8.10 million in July from 8.184 million in June.

Crypto markets appeared aligned with the sentiment in global markets where a sell-off deepened following renewed concerns about economic growth in the U.S. as well as the outlook on the tech sector. In this backdrop, overall market capitalization has slipped 3.3 percent overnight to $1.98 trillion. The market capitalization of the AI& Big data category plunged more than 4 percent overnight to $25.5 billion as concerns over the sell-off in AI darling NVIDIA dampened crypto market sentiment.

Bitcoin is currently trading at $56,491, around 23 percent below the all-time high recorded in March 2024. Bitcoin has slipped 3.5 percent overnight, 5.7 percent in the past 7 days and 7.2 percent over the past 30 days. Year-to-date gains have fallen to less than 34 percent.

Ethereum is currently changing hands at $2,402, around 51 percent below the all-time high. Ether has slipped 3 percent overnight, 4.7 percent in the past 7 days and 17.6 percent over the past 30 days. Year-to-date gains have fallen to a little over 5 percent.

Bitcoin dominates 56.2 percent of the overall crypto market followed by Ethereum that has a 14.5 percent market share.

4th ranked BNB (BNB) dropped more than 5.5 percent overnight and 7.4 percent on a weekly basis to trade at $499.97.

5th ranked Solana (SOL) slipped 2.3 percent overnight and more than 12 percent in the past 7 days. SOL is currently trading at $129.17.

7th ranked XRP (XRP) slipped 2.3 percent overnight and 4.6 percent in the past week to trade at $0.5511. Year-to-date losses have crossed 10 percent.

Dogecoin (DOGE), ranked 8th overall has also plunged 3.3 percent in the past 24 hours to trade at $0.09567.

9th ranked TRON (TRX) declined 1.12 percent overnight to trade at $0.1499.

10th ranked Toncoin (TON) declined 7.7 percent overnight and 13.9 percent over the past week.

54th ranked Helium (HNT) topped overnight gains with an addition of 3.6 percent. 78th ranked Starknet (STRK) has also rallied more than 3 percent overnight.

53rd ranked THORChain (RUNE) topped overnight losses among the top 100 cryptocurrencies with a decline of 10.4 percent. 73rd ranked Notcoin (NOT) also shed more than 9 percent overnight.

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