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After the US data of economic trends in manufacturing came in a downward direction because of which the crypto market is down
The cryptocurrency market as a whole has experienced a downturn in the last 24 hours, as Bitcoin has lost almost 4% and the top ten altcoins have fallen anywhere between 4-10%. At the time of writing, the Bitcoin price is down 3.67% and is falling below $64,500, as macro conditions indicate weak demand in the US economy.
The Downturn Of Global Markets
According to S&P Global’s preliminary US Composite PMI Output Index, which measures both manufacturing and services sectors, private sector expansion dropped to 50.9 this month from 52.1 in March. A reading above 50 indicates growth in the private sector.
In April, business activity in the United States slowed down to its lowest level in four months, due to reduced demand, while inflation rates saw a small decline despite significant increases in input costs. These developments suggest potential relief ahead, aligning with the Federal Reserve’s quest for signs that economic activity is slowing down enough to ease inflationary pressures.
The Bitcoin critic began his commentary by suggesting that the decline in gold’s value may have come to an end. Despite trading slightly above $2,300, he compared this price to gold’s new benchmark of $2,000.
Schiff pinpointed a resistance point for gold at $2,400, expecting it to be brief. On the other hand, he commented that Bitcoin’s prospects differ from those of gold.
The Drop In Bitcoin Transaction Fees, Post Halving
Bitcoin transaction fees surged significantly after the halving event, with medium-priority transactions costing on average $146 and high-priority ones costing $170. Nevertheless, after the halving, the average fees for Bitcoin transactions have decreased considerably.
The Runes NFT collection was expected to keep the fee revenue stable post-halving, but the base price for this collection has also decreased.
The average fees paid on Bitcoin have plummeted substantially, a day after reaching an all-time high average of $128 on April 20. According to mempool.space, currently, medium-priority transactions on Bitcoin cost between $8 and $10. Bitcoin leads the way in total fees, with Crypto Fees reporting a $78.3 Million total fee figure, which is over 24 times higher than Ethereum’s.
Global Data Amid Market Downturn
US GDP grew 1.6% in Q1 2024. Stock futures fell with S&P 500, Dow Jones, and Nasdaq 100 losing 0.8%, 220 points, and 1.1% respectively. Meta and IBM shares fell, while Honeywell’s rose by 2% in pre-market trading. Bitcoin fees dropped to $8-10 for medium-priority transactions. Bitcoin’s total fees are over 24 times higher than Ethereum’s, with a $78.3 Million total fee figure.
Summary
The cryptocurrency market and Bitcoin have experienced a downturn, while the private sector expansion dropped to 50.9 this month. Meta and IBM shares fell, and Honeywell’s rose by 2% in pre-market trading. Bitcoin fees dropped to $8-10 for medium-priority transactions.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
