Bitcoin (BTC) fell to its lowest level since early August, briefly dipping under $55,500, as the broader cryptocurrency market tracked steep losses across global equity markets. The flagship cryptocurrency reversed nearly all its gains from the past month, falling over 7% alongside major tokens like Solana's SOL and Ethereum's ETH.

The sell-off was triggered by weak US manufacturing data that reignited concerns over an economic slowdown. The August reading of the Institute for Supply Management's manufacturing index slumped for a fifth straight month, remaining below the 50 threshold that separates expansion from contraction.

The plunge in US stocks, with the Nasdaq 100 and S&P 500 dropping as much as 3.5%, spread to Asian markets as well. Japan's Nikkei index slid more than 4% in the aftermath, exacerbating the impact of last month's unwinding of the Yen carry trade. The broader cryptocurrency market, as tracked by the CoinDesk 20 index, fell nearly 6% in the selloff.

Source: https://www.coindesk.com/markets/2024/09/04/bitcoin-dives-under-56k-amid-us-japan-stock-market-rout/

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