In the past 24 hours, the cryptocurrency market has experienced a significant plunge due to renewed concerns about the U.S. economy’s growth. A major factor contributing to this downturn was the release of the ISM Manufacturing PMI data on Tuesday, which showed a more substantial decline in the factory sector than anticipated. This marked the fifth consecutive month of declining activity, further dampening market sentiment. The data revealed a PMI of 47.2 for August, a slight increase from July’s 46.8 but still below market expectations of 47.5, indicating a continued contraction in the manufacturing sector.

Additionally, massive outflows from Bitcoin Spot ETF products in the U.S. on Tuesday compounded the crypto market’s weakness. Farside Investors reported a dramatic increase in outflows, jumping to $288 million from $176 million the previous day. None of the ETFs recorded positive inflows on Tuesday. The Fidelity Wise Origin Bitcoin Fund (FBTC) led the outflows with $162 million, followed by the Grayscale Bitcoin Trust (GBTC) with over $50 million in outflows. The Ark 21Shares Bitcoin ETF (ARKB) and Bitwise Bitcoin ETF (BITB) also saw significant outflows of $34 million and $25 million, respectively.

The tech sector’s sell-off further exacerbated negative market sentiment. In this context, Bitcoin plummeted to a low of $55,673, while Ether reached a low of $2,313 within the past 24 hours. The overall cryptocurrency market capitalization has slipped by 3.3% overnight, now standing at $1.98 trillion. The AI & Big Data category saw a steeper decline, plunging over 4% overnight to $25.5 billion, as concerns over the sell-off in AI giant NVIDIA affected market confidence.

Adding to market jitters was the anticipation of the monthly job openings and labor turnover report, due on Wednesday morning. This report serves as a crucial demand-side indicator of labor shortages at the national level and is expected to highlight the labor market’s strength ahead of the more closely watched non-farm payrolls report due on Friday. With the Federal Reserve’s renewed focus on labor market conditions influencing its interest rate strategy, the significance of this data release is heightened. Markets expect job openings to slightly decrease to 8.10 million in July from 8.184 million in June.

Bitcoin is currently trading at $56,491, approximately 23% below its all-time high recorded in March 2024. The cryptocurrency has declined by 3.5% overnight, 5.7% over the past week, and 7.2% over the past month. Year-to-date gains have diminished to less than 34%. Ethereum is trading at $2,402, about 51% below its all-time high. Ether has slipped by 3% overnight, 4.7% in the past week, and a substantial 17.6% over the past month, with year-to-date gains barely above 5%.

Bitcoin continues to dominate with a 56.2% share of the overall crypto market, followed by Ethereum with a 14.5% market share. BNB (BNB), ranked fourth, dropped more than 5.5% overnight and 7.4% on a weekly basis to trade at $499.97. Solana (SOL), ranked fifth, slipped by 2.3% overnight and over 12% in the past week to trade at $129.17.

XRP (XRP), ranked seventh, decreased by 2.3% overnight and 4.6% over the past week, trading at $0.5511 with year-to-date losses exceeding 10%. Dogecoin (DOGE), ranked eighth, also plunged by 3.3% in the past 24 hours to trade at $0.09567. TRON (TRX), ranked ninth, declined by 1.12% overnight to trade at $0.1499. Toncoin (TON), ranked tenth, saw a significant decline of 7.7% overnight and 13.9% over the past week.

Among other notable movements, Helium (HNT), ranked 54th, topped overnight gains with an increase of 3.6%, while Starknet (STRK), ranked 78th, also rallied more than 3%. On the downside, THORChain (RUNE), ranked 53rd, experienced the largest overnight losses among the top 100 cryptocurrencies with a decline of 10.4%, followed by Notcoin (NOT), ranked 73rd, which shed more than 9%.

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