Bitcoin plunges to multi-month lows, wiping out over $220 billion in value amid recession fears
Bitcoin (BTC), the world's largest cryptocurrency by market value, plunged to multi-month lows on Monday as concerns over a potential US recession, fueled by disappointing economic data, spurred a rush to safe-haven assets.
As of 12:57 pm IST, Bitcoin was trading 13.3% lower at $52,586, having briefly dropped to $49,121 in early Asian trading hours.
«Bitcoin has plummeted to around $53,000, marking a significant decline, while Ether has also turned negative for 2024, reflecting broader concerns in the crypto sector. This downturn is driven by regulatory pressures, adverse macroeconomic factors like weak US job data, and the Japanese stock market crash. Investors, fearing a prolonged bearish trend, are reacting with increased volatility and panic,» said CoinSwitch Markets Desk.
Recession fears were intensified by data released post-market on Friday, revealing that US job growth in July was significantly weaker than expected. The Labor Department reported an increase of just 1,14,000 nonfarm payrolls, well below the 1,75,000 forecast and far short of the 2,00,000 needed to keep up with population growth. The unemployment rate also rose to 4.3%, nearing a three-year high.
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