At the time of writing, Bitcoin is selling for about $56,480; ether traded down 5.6% at $2,377. Over the past day, the crypto market as a whole dropped 4.8%.

Head of research at Presto Research, Peter Chung, claimed that the loss was mostly caused by the poor August ISM data released overnight, which “led to a sell-off across all TradFi risk assets.” Though it stayed in the contraction area, the U.S. ISM manufacturing index for August came in at 47.2%, up 0.4 percentage points from July.

According to Chung, the 4% drop in Bitcoin over the past day happened in two steps. “The first fall is actually quite moderate, compared to its 17% fall during the August 5 market meltdown which was due to the same growth scare. This suggests the Bitcoin market was more efficient in discounting the growth risk than TradFi.”

“In my view, the second step is a knee-jerk reaction to the weak Asian stock market this morning by the Asia-based investors. TOPIX, KOSPI are all down quite a bit this morning. But overall, the 4% fall is still moderate for Bitcoin considering the magnitude of the fall in TradFi markets.” Chung stated.

While South Korea’s KOSPI dropped 2.46% so far this morning, Japan’s TOPIX benchmark plummeted 2.7% during the early session at time of writing. Tuesday saw chipmaker Nvidia lose 9.5% in the United States.

“With the long weekend that took place [in the U.S.], most assets — traditional and crypto — are digesting bearish sentiment. Crypto, being more volatile and one of the few markets open 24/7, has felt the brunt of this,” Justin d’Anethan, head of APAC business development of crypto market maker Keyrock,

Investors are also considering the possible influence of the non-farm payroll data set scheduled for Friday publication. “September will be a busy month with a mood-setting NFP this Friday and an almost guaranteed Fed rate cut in about two weeks. Investors will get a confirmation of the degree of the economic slowdown,” said Augustine Fan, head of insights at SOFA.org.

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