Falling US Stocks Pull Bitcoin Back

CoinDesk 20 Index: 1,786.39 −3.8%Bitcoin (BTC): $56,607.61 −4.24%Ether (ETH): $2,395.39 −4.4%S&P 500: 5,528.93 −2.12%Gold: $2,488.75 −0.17%Nikkei 225: 37,047.61 −4.24%

Bitcoin fell below $56,000 in the morning, hitting its lowest level since Aug. 8 and reversing almost all of its gains over the past month.

The CoinDesk 20 Index (CD20), which comprehensively measures the digital asset market, lost about 3.5% in the same period.

U.S. stocks, tracked by the Nasdaq 100 and S&P 500 indexes, fell as much as 3.5% as U.S. manufacturing data reignited concerns about an economic slowdown.

JPMorgan (JPM) reported in its research report published yesterday that bitcoin (BTC) mining profitability remains stuck at record lows.

“We estimate that Bitcoin miners earned an average of $43,600 per EH/s in daily block reward revenue in August, the lowest level ever,” analysts Reginald Smith and Charles Pearce wrote in the report. The average price of the world’s largest cryptocurrency has fallen for three consecutive months while the network hashrate has risen.

The report noted that the total market value of 14 miners listed in the US decreased by 15 percent on a monthly basis to $20 billion, with only three of the miners outperforming bitcoin during this period.

Crypto derivatives protocol Volmex Finance has developed a new implied volatility index for Solana’s SOL token to measure expected price fluctuations in the world’s fifth-largest cryptocurrency.

The SVIV index will measure the cryptocurrency’s 14-day expected volatility. Perpetual futures tied to Volmex’s bitcoin implied volatility index and ether index have been trading on Bitfinex since early April.

Bitcoin’s seven-day options curve has fallen to its lowest levels in three weeks, reflecting renewed demand for options that offer downside protection. This is a sign that investors are bracing for a deeper price decline following NVDA’s sell-off. Source: Amberdata