Weakness in economic data, especially the slowdown in the manufacturing sector, increased concerns about economic stagnation in the markets. Data on Tuesday showed that the decline in the production sector of the US economy continued. These developments put pressure on markets around the world.

Negative market conditions in the USA also had an impact in Asia. Japan’s Nikkei index lost more than 4% in the hours after the open on Tuesday.

This decline deepened further due to the fluctuations that occurred after the Yen carry trade was resolved. These fluctuations in Asian markets revealed the impact of economic developments in the USA on global markets.

Economic data in the USA showed that the Institute for Supply Management’s (ISM) August production index remained below the 50 threshold for the fifth consecutive month. This index is a monthly indicator that measures the level of economic activity in the US manufacturing sector and provides clues about the overall economy.

The fact that the index remained below 50, despite the small-scale recovery seen in July, revealed that the US economy could not achieve a recovery in the manufacturing sector and the risk of economic stagnation increased.

This negative atmosphere in the global markets was also felt in the cryptocurrency markets. Bitcoin (BTC) fell to its lowest level since early August in Asian markets on Wednesday morning.

BTC has regained all the value it gained in the last month, following declines of up to 10% in major stocks. BTC dropped to $55,500 for a short time and hit its lowest level since August 8.

This decline in crypto markets was not limited to Bitcoin alone. The broader market, tracked by the CoinDesk 20 (CD20) index, which tracks the largest market cap tokens, also fell close to 6%.

This decline has become especially pronounced in major tokens such as Solana’s SOL and ether (ETH). SOL and ETH were among the tokens that suffered the biggest losses, losing more than 7% in value.

Concerns about stagnation in the global economy lie behind these negative developments in the US and Asian markets. Weak economic data and a slowdown in the manufacturing sector are causing investors to be risk averse.

Weak manufacturing data in the US increases uncertainties, especially about the future of the US economy, triggering investors’ search for a safe haven. This leads to sudden declines in both stocks and cryptocurrency markets.

Fluctuations in the US and Asian markets increase investors’ concerns about the future of global economic conditions. Weakness in economic data causes investors to be more cautious.

Especially the decline in the manufacturing sector in the USA and the large losses in Japan direct investors to safer havens. This situation also caused huge losses in cryptocurrencies, which are considered risky assets.