Bitcoin Drops Below $113,000 Following Weak ISM Services PMI Report

The latest economic indicators reflect a downturn, impacting both crypto and traditional markets. Key points include:

• The ISM Services PMI for July registered at 50.1, below the expected 51.5, signaling near stagnation.
• This marks three consecutive months of weak performance: May at 49.9, June at 50.8.
• The Prices Paid subindex hit a cycle high of 69.9, indicating rising costs influenced by tariffs.
• Bitcoin (BTC) dropped nearly 2% from over $114,000 to $112,800 following the news.
• Economist Mark Zandi noted the economy is on the brink of recession, with flat consumer spending and declining construction and manufacturing.
• Hoisington Investment Management's Lacy Hunt and Van Hoisington suggest the Fed should adopt an accommodative policy quickly due to potential global economic contraction.