In the past 24 hours, the cryptocurrency market has experienced a significant downturn, fueled by renewed concerns about the U.S. economy’s growth trajectory. The latest data from the ISM Manufacturing PMI released on Tuesday revealed a larger-than-anticipated decline in the factory sector. This marked the fifth consecutive month of decreased activity, casting a shadow over market sentiment. The cryptocurrency market was further impacted by substantial outflows from Bitcoin Spot ETF products in the U.S. on Tuesday and a concurrent sell-off in the tech sector. As a result, Bitcoin plummeted to a low of $55,673, while Ether dropped to $2,313 within the same period.

The ISM manufacturing PMI for August reported a figure of 47.2, compared to 46.8 in July and market expectations of 47.5. It’s important to note that any reading below 50 signals contraction in the sector.

Farside Investors released data showing a dramatic surge in outflows from Bitcoin Spot ETF products in the U.S. on Tuesday. Outflows soared to $288 million, up from $176 million the previous day. None of the ETFs recorded positive inflows that day. Leading the outflow was the Fidelity Wise Origin Bitcoin Fund (FBTC) with $162 million. Following were the Grayscale Bitcoin Trust (GBTC) with over $50 million in outflows, Ark 21Shares Bitcoin ETF (ARKB) with $34 million, and Bitwise Bitcoin ETF (BITB) with $25 million.

Market sentiment was further dampened by apprehension ahead of the monthly report on job openings and labor turnover, scheduled for release on Wednesday morning. This report, which serves as a demand-side indicator of labor shortages at the national level, is expected to reveal insights into the labor market’s strength ahead of the more closely watched non-farm payrolls report due on Friday. The Federal Reserve’s renewed focus on labor market conditions in its interest rate strategy has amplified the importance of this data release. Markets anticipate that job openings will decrease slightly to 8.10 million in July from 8.184 million in June.

The sentiment in global markets appeared to resonate with the crypto market’s mood, as a deeper sell-off unfolded amidst concerns over U.S. economic growth and the tech sector’s outlook. Consequently, overall market capitalization has dropped 3.3 percent overnight to $1.98 trillion. The market capitalization of the AI & Big Data category saw an even steeper decline of over 4 percent overnight, settling at $25.5 billion, as worries over AI giant NVIDIA’s performance weighed heavily on crypto market sentiment.

Bitcoin is currently trading at $56,491, marking a 23 percent drop from its all-time high recorded in March 2024. Over the past 24 hours, Bitcoin has declined by 3.5 percent, with a 5.7 percent decrease over the past week and a 7.2 percent drop over the past month. Year-to-date gains for Bitcoin have now fallen below 34 percent.

Ethereum is trading at $2,402, which is about 51 percent below its all-time high. Ether has decreased by 3 percent overnight, 4.7 percent over the past week, and a notable 17.6 percent over the past month. Year-to-date gains for Ether have dwindled to just over 5 percent.

Currently, Bitcoin dominates 56.2 percent of the overall crypto market, followed by Ethereum with a 14.5 percent market share.

BNB (BNB), ranked fourth, has dropped more than 5.5 percent overnight and 7.4 percent on a weekly basis to trade at $499.97.

Solana (SOL), holding the fifth position, slipped by 2.3 percent overnight and more than 12 percent over the past week, trading at $129.17.

XRP (XRP), ranked seventh, saw a 2.3 percent overnight decline and a 4.6 percent drop over the past week, trading at $0.5511. Year-to-date losses have now exceeded 10 percent.

Dogecoin (DOGE), ranked eighth overall, plunged by 3.3 percent in the last 24 hours to trade at $0.09567.

TRON (TRX), ranked ninth, experienced a 1.12 percent decline overnight to trade at $0.1499.

Toncoin (TON), ranked tenth, declined by 7.7 percent overnight and has dropped 13.9 percent over the past week.

Among lesser-known cryptocurrencies, Helium (HNT), ranked fifty-fourth, topped overnight gains with an increase of 3.6 percent, while Starknet (STRK), ranked seventy-eighth, also rallied more than 3 percent overnight.

THORChain (RUNE), ranked fifty-third, led overnight losses among the top 100 cryptocurrencies with a decline of 10.4 percent, while Notcoin (NOT), ranked seventy-third, shed more than 9 percent overnight.

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