The volatility in the cryptocurrency industry continues, with the leading digital asset plummeting from $65,600 to $62,300 for the second time in the past day or so.
The main driver behind the latest price plunge could be attributed to the developments on US soil, as the jobs data was weaker than expected, and the stock market crashed.
JUST IN: Over $2.9 trillion has been wiped out from major indices and stocks this morning due to growing fears of a global recession.
This is the worst day for stocks since March 16, 2020, during the COVID-19 pandemic fears. pic.twitter.com/qIPu7xiz5X
— Jacob King (@JacobKinge) August 2, 2024
The opening bell for the US stock market was met with immediate price declines from most larger companies and, naturally, the most prominent indexes. The S&P 500 is down by over 2% daily, while the Nasdaq Composite’s decline went to 3% earlier today.
The overall market-wide crash has been linked to the US jobs data that was released earlier today, which was below expectations. The unemployment rate has skyrocketed to its highest levels since October 2021 of 4.3%.
JUST IN: A really weak July jobs report. The US economy added only 114,000 jobs in July (well below forecasts)
Unemployment rate hits 4.3% —> Highest since October 2021 and this triggers the Sahm Rule recession indicator.
Wage growth: 3.6% (vs. 3% inflation) pic.twitter.com/dWeAIPMHiW
— Heather Long (@byHeatherLong) August 2, 2024
Bitcoin reacted in a similar fashion. The asset had already faced tons of volatility at the end of the business week but it had recovered some ground and stood close to $65,500. However, it slumped hard to $62,200 for the second time in the past day.
BTC has since bounced off and now sits above $63,000. Most altcoins experienced identical price fluctuations, leaving over $300 million in liquidations on a daily scale.