World markets fell again in a correlated manner. Bitcoin fell below $56,000 in the night hours, while Nasdaq and S%P 500 closed the day with 3.1% and 2.1% declines, respectively. In Asian markets, Japan and South Korea also closed negative.
PMI data was cited as the reason
Experts attribute the recent declines to the Manufacturing Purchasing Managers’ Index data announced in the US yesterday, which came in below expectations. Although the index score, which was announced as 46.8 in July, was 47.2 for August, expectations were 47.5. The fact that the index score in the manufacturing sector is below 50 indicates that this item, which accounts for 10% of the US economy, is contracting. This rate, also known as ISM Manufacturing PMI, has always been below 50 for the last 5 months.
Declines especially negatively affected technology stocks. There were serious declines in many stocks, especially Nvidia. Nvidia lost $280 billion from its market value in declines. After the declines, the news of the investigation opened by the US Department of Justice also attracted attention.
Bitcoin companies also fell hard
MicroStrategy, the company with the most Bitcoin in the world, fell more than 7.5%, while mining companies, which have been falling continuously in the recent period, have added new losses. RIOT fell 10% and Marathon fell 9%. The stock of Coinbase, the largest cryptocurrency exchange in the US, also fell 7.6%. COIN is trading at $169.
Japanese said ‘increase’ again
It is worth noting that the Bank of Japan Governor Kazuo Ueda’s statements that they will continue to raise interest rates were also effective in the declines in the markets. The institution’s surprise interest rate hike in August caused a short-term panic in the financial markets, and in this panic, Bitcoin fell to $49,000.
Important on Friday
Important data will be announced on Friday, the last trading day of the week. US non-farm employment and unemployment data will determine the course of the stock market as well as cryptocurrencies. The employment figure, which was announced as 114 thousand in July, is expected to be 160 thousand in August and the unemployment rate, which was announced as 4.3% in July, is expected to fall to 4.2%.