The financial markets experienced a turbulent day on Friday, with Bitcoin and the main stock market indices falling significantly. This volatility follows the release of disappointing US employment data, rekindling concerns about a possible recession.
Disappointing US employment figures send shockwaves through the markets
Since Thursday, the crypto market market as a whole is experiencing a downward trend which intensified on Friday August 2, following the announcement of US employment figures. The downturn is part of a general climate of concern on the world’s financial markets. Stock markets from Asia to Europe also suffered significant losses.
Official US employment figures published this Friday reveal that only 114,000 jobs were created in July, well below the 176,000 expected. More worryingly, the unemployment rate climbed from 4.1% to 4.3%, the highest US jobless rate since November 2021.
These disappointing data sent shockwaves through the financial markets. The Bitcoin saw its price plummet, hitting a low of $60,300 before stabilizing at around $61,600.
Stock markets under pressure
The main stock markets were not spared by this wave of pessimism. In Asia, the MSCI the broadest index of Asia-Pacific equities (excluding Japan) fell by 2.54%, its worst performance since June 2022. Japan’s Nikkei plummeted by almost 5%, reaching its lowest level since April.
In Europe, the mood was equally gloomy, with EUROSTOXX 50 futures down 0.8%. In the US, Nasdaq and S&P 500 futures also posted significant declines, down 1.35% and 0.76% respectively.
In total, 2.9 trillion dollars were wiped off the stock market on Friday due to fears of a global recession. This chain reaction illustrates investors’ nervousness about signs of weakness in the US economy, considered the engine of global growth.
The crypto market therefore seems to be a collateral victim of this fall. One question remains: has the bullrun already taken place?
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
