Bitcoin (BTC) tumbled to $55,500 on Wednesday, its lowest since early August, erasing nearly all gains from the past month.
This sharp decline followed a broader selloff in global markets, with major U.S. and Asian stocks taking a hit.
Solana’s SOL and Ether (ETH) also fell over 7%, dragging the broader crypto market down by 6%, according to the CoinDesk 20 index.
U.S. stocks, including the Nasdaq 100 and S&P 500, plunged as much as 3.5% on Tuesday, marking a rough start to September—historically a weak month for markets.
The decline came after the release of disappointing data from the Institute for Supply Management (ISM), which showed its manufacturing index remained below the key 50 threshold for the fifth straight month, signaling continued contraction in the U.S. manufacturing sector.
The selloff extended to Asian markets, with Japan’s Nikkei falling more than 4% after opening.
Last month’s unwinding of the Yen carry trade added to the downward pressure, exacerbating the slide.
Bitcoin’s decline underscores the ongoing volatility in both business and traditional markets.
With September historically being a turbulent month, traders may need to brace for more challenges ahead.
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