Recession Fears Loom as Bitcoin Tumbles and Stock Indices Drop

Concerns about a looming U.S. recession continue to stir unease. By noon on Sept. 5, the Russell 2000, Dow Jones, Nasdaq, and NYSE were all down.

Major U.S. stock indices slipped into the red on Thursday, while bitcoin (BTC) fell 3.6% in the past 24 hours. Gold, on the other hand, enjoyed a nearly 1% gain, climbing back above the $2,500 per ounce mark.

The crypto market mirrored the stock market’s downturn ahead of Friday’s anticipated U.S. jobs report.

Recession Fears Loom as Bitcoin Tumbles and Stock Indices Drop

Concerns about a looming U.S. recession continued to stir unease on Thursday, with several market indicators pointing to potential economic fragility.

By noon on Sept. 5, the Russell 2000, Dow Jones, Nasdaq, and NYSE were all down. Investors are awaiting the jobs report, which is set to be released on Friday.

Among the indicators raising concerns are the U.S. Treasury yield curve, which has remained inverted for over two years, and the Sahm Rule—an indicator with a history of predicting recessions—which was recently triggered.

Despite the market slump and recession fears, some market participants still expressed optimism for a “soft landing.”

“While incoming data is mixed, it is not collapsing, and the global cutting cycle should help the economy achieve a soft landing, extending the cycle into 2025,” Emmanuel Cau, head of European equity strategy at Barclays, told CNBC.

“We see this as a broadly positive environment for equities, but a lot is arguably priced in, and there are a number of wildcards to get through,” the Barclays’ market strategist added.

Bitcoin Dipped 3% on Thursday, Overall Crypto Market Cap Now at $1.99 Trillion

Bitcoin fell 3% on Thursday, while the overall crypto market experienced a decline of 1.53%, bringing the total market cap to $1.99 trillion.

Among the top ten cryptos, BTC and ETH led as the biggest losers on Thursday afternoon. Out of the top ten, only dogecoin (DOGE) managed to post gains, rising 0.2% during the past 24 hours.

After briefly dropping below the $56K zone, bitcoin bounced back to $56,300 per coin by 12:50 p.m. EDT.

Gold Price Today: XAU Price Rises 0.6% Against the Dollar, Now at $2,510

The price of gold enjoyed a slight increase on Thursday, rising 0.6% against the U.S. dollar. At the time of writing, an ounce of gold is valued at $2,510.

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