Cryptocurrency markets fall today - weak macroeconomic data leads to stock market sell-off
The main reasons for the cryptocurrency market's decline today:
1. Weak U.S. manufacturing data
The U.S. manufacturing purchasing managers' index (PMI) for August, released on September 3, was 47.2, lower than market expectations, and contracted for the fifth consecutive month, indicating that the U.S. manufacturing industry has officially fallen into recession. This triggered a sell-off in the stock market and the cryptocurrency market.
2. Fed rate hike expectations heat up
Weak manufacturing data has increased expectations of further Fed rate hikes and may lead to larger rate hikes, which has further hit investor sentiment.
3. Long liquidation in the derivatives market
On September 3, a large-scale long liquidation occurred in the cryptocurrency derivatives market, causing cryptocurrency prices to fall. In the past 24 hours alone, long traders suffered a liquidation of $65.08 million.
4. Technical pressure
From a technical point of view, the total market value of cryptocurrencies has fallen below important support levels, forming a downward parallel channel, indicating that a deeper adjustment may be coming. The relative strength index also shows that the strength of shorts has increased.
In summary, weak macroeconomic data, expectations of a rate hike by the Federal Reserve, liquidation of derivatives markets, and technical pressure have all contributed to today's sharp drop in the cryptocurrency market. The next market trend needs to be closely watched.
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