Bitcoin Price Falls Amid Economic Data Outlook

Investing.com — Bitcoin’s price declined on Tuesday as investors anticipated significant economic data this week.

By 13:56 ET (18:56 GMT), Bitcoin had decreased by 1.3% to $57,752.9, following relatively thin trading volumes on Monday due to the U.S. Labor Day holiday.

Last week, the world’s largest cryptocurrency slumped over 7% and spent much of the previous month trending lower, primarily due to concerns about token distributions and mass sale events, notably from the defunct exchange Mt. Gox. Additionally, apprehensions regarding a potential U.S. recession led to substantial losses across global financial markets, including cryptocurrencies, at the beginning of August.

Focus now shifts to crucial economic data this week, culminating in the anticipated U.S. nonfarm payrolls release on Friday.

The U.S. Federal Reserve is widely expected to initiate interest rate cuts later this month, with the payroll data potentially influencing the magnitude of these reductions, which could impact broader risk sentiment. Lower interest rates are generally favorable for cryptocurrencies as they enhance liquidity for speculative trading.

Traders are calculating an almost certain 100% chance of a 25 basis point cut in September, according to the closely monitored CME Fedwatch Tool.

Crypto Prices Today

In other cryptocurrency pricing, the world’s second-largest digital token, Ether (ETH/USD), fell by 3.1% to $2,444.97, marking a dip of over 20% in August, its worst month since January 2022.

Solana dropped 2.3%, while XRP increased by 0.2%, and Cardano decreased by 3%.