Bitcoin Follows Wall Street’s Drop As It Falls Towards $62,000 Amid Weak US Jobs Data

Volatility in the cryptocurrency industry continues, with the leading digital asset plummeting from $65,600 to $62,300 for the second time in the last day or so.

The main driver of the latest drop in prices can be attributed to developments on US soil, as employment data was weaker than expected and the stock market crashed.

JUST IN: More than $2.9 trillion was wiped from major indexes and stocks this morning amid 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 of the American stock market was met with immediate falls in the prices of most of the largest companies and, naturally, of the most prominent indices. The S&P 500 is down more than 2% on the day, while the Nasdaq Composite’s decline reached 3% today.

The overall market-wide decline was linked to the US employment data released today, which came in below expectations. The unemployment rate has soared to its highest levels since October 2021 at 4.3%.

JUST IN: A very weak July jobs report. The US economy added just 114,000 jobs in July (well below forecasts)

Unemployment rate reaches 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 similarly. The asset had already faced tons of volatility at the end of the trading week, but had regained some ground and settled near $65,500. However, it fell sharply to $62,200 for the second time in the last day.

Since then, BTC has bounced back and is now above $63,000. Most altcoins experienced identical price fluctuations, leaving more than $300 million in liquidations on a daily basis.

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