Bitcoin started last week in free-fall after shedding $367 billion in value before giving back some of the losses later that day. The cryptocurrency saw a massive drop in the wake of a disappointing July jobs report that cast a long shadow over the U.S. economy. The report revealed a meagre increase of 114,000 jobs and a rise in unemployment to 4.3%, triggering a wave of concern among investors and economists, with many now calling for swift and decisive action from the Federal Reserve.

Markets have since rebounded slightly. The Nasdaq closed the week in green, climbing back above $18,500, while Japan’s Nikkei 225 gained 15% since last Monday’s lows. Bitcoin has followed this upward trend, recovering from its initial dip and holding steady at around $59,000. But there may still be bumpy weeks ahead. A key reason for these bearish markets is fear of a slowdown in the US economy that may lead to a recession. This has caused a contagion of pessimism among investors with many investors adopting a wait-and see approach.