Bitcoin Dips Below $113K as Weak ISM Services Print Fuels Recession Concerns
Bitcoin slipped back under $113,000 on Tuesday as investors reacted to more signs of economic fragility in the U.S., with the ISM Services PMI registering a third straight month of soft performance.
The July reading came in at 50.1, falling short of expectations for 51.5, and barely holding above contraction territory. The prior two months also disappointed, with May at 49.9 and June at 50.8, indicating a steady downtrend in services activity.
The report also flagged inflationary pressures, with the Prices Paid component jumping to 69.9, the highest level of this cycle. One respondent noted that tariffs were driving up costs significantly enough to force project delays.
Markets React
The weak PMI followed Friday’s sharp downward revision to U.S. jobs data, compounding fears that the economy is nearing an inflection point. Bitcoin (BTC) dropped nearly 2% to $112,800, while the Nasdaq reversed earlier gains to close lower by 0.5%.
Rate Cut Debate Resurfaces
Economist Mark Zandi warned the recent revisions signal a turning point:
“The economy is on the brink of recession — consumer spending has stagnated, and job losses may soon follow.”
Bond market veterans Lacy Hunt and Van Hoisington also urged the Federal Reserve to move swiftly toward easing:
“Tariff-driven inflation is likely short-lived. The Fed risks being too slow as the more damaging effects of global economic contraction take hold.”
With mounting signs of slowdown and inflation persisting, pressure is building on the Fed to reconsider its stance — and risk assets like Bitcoin remain highly sensitive to these shifting macro signals.
