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U.S Manufacturing Growth Slows, Bitcoin Falls Under $40,000 & Oil Prices React to Demand Concerns

U.S. indices stall as Manufacturing growth slows

Indices in the United States were mainly unchanged to start the trading week, as data released showed that manufacturing activity was slowing.

Figures released by the ISM’s index of national factory activity showed a decline to 59.5 in July, after a reading of 60.6 in June.

Today’s reading is the lowest the index has recorded since January and missed most market expectations for a 60.9 increase last month.

Generally, the sector which accounts for close to 12% of the U.S. economy, is still in growth, with a reading over 50 indicating expansion in manufacturing activity.

The Dow Jones, S&P 500 were marginally higher as of writing.

Bitcoin falls below $40,000

Bitcoin started the new week by once again trading below $40,000, as the world’s largest cryptocurrency failed to continue last week’s rally.

Cryptocurrencies across the board were trading higher last week, as markets rose from the long-term price floor of $33,000.

Since bouncing from that support, prices climbed to a 6-week high of $41,609 on Friday, however failed to break beyond that point today.

BTCUSD fell to an intraday low of $38,899 on Monday, as reports that Saudi Aramco was planning to use flare gas to mine Bitcoin, were swiftly rejected by the oil giant.

Many now believe that the digital currency could head for further consolidation this week.

Oil prices stumble on demand concerns

Along with Bitcoin prices, oil rates suffered a sizable drop today, as markets anticipated demand for energies to begin slowing.

With manufacturing activity in both the United States and China stalling, markets believe that demand from the world’s biggest energy consumers may be impacted as a result.

In addition to this, COVID-19 cases in the United States continue to flare, with Florida recording its biggest single daily number of injections since the pandemic began.

This comes as OPEC’s recent output hike commenced this week, meaning that supply may have finally edged closer to an equilibrium with global demand.

As of writing, WTI crude hit an intraday low of $70.79, down 4% on the day.

Quote of the day – “It’s not whether you’re right or wrong that’s important, it’s how much money you make when you’re right and how much you lose when you’re wrong.”

– George Soros