Crypto Tuesday Crumble: Bitcoin Below $58K, Ether at 7-Month Low

Market Summary

The crypto market took a sharp downturn on Tuesday, erasing recent gains. Bitcoin fell 1.5% to $57,800, while Ethereum plunged 3% to $2,442, its lowest level since early February. This decline aligns with broader market trends, as the Nasdaq dropped 2.4% and the S&P 500 fell 1.5%.

August's ISM Manufacturing PMI showed continued contraction at 47.2, with stagflation concerns rising due to increased prices paid. In response, traders have increased bets on a potential 50 basis point Fed rate cut in September to 39%, up from 30% previously.

The crypto market remains cautious as September historically presents challenges for Bitcoin, with negative returns in seven of the last ten years. However, some optimism persists for a potential rebound in October and the fall season.

All eyes are now on Friday's August employment report, which could significantly influence Fed decisions and market direction. Economists forecast job gains rebounding to 160,000 from July's 114,000, with the unemployment rate potentially dipping to 4.2%.

Despite the current downturn, long-term market watchers are balancing immediate concerns with the potential for a more favorable monetary policy environment in the near future. Crypto-centric stocks like NVIDIA, Interactive Brokers, and Robinhood remain in focus as investors navigate this volatile period.

Financial data from CoinGecko