Why Crypto Market Is Down Today: Key Reasons Behind the Decline

Why Crypto Market Is Down Today: Possible Reasons and Market Impact

The global crypto market is experiencing a significant downturn, with major players like Bitcoin (BTC), Ethereum (ETH), BNB, and Solana entering a bearish phase. The total crypto market cap has dropped to $2.05 trillion, reflecting a 2.54% decrease over the last day. Several key factors are contributing to this decline, including market uncertainty ahead of the Federal Reserve’s interest rate decision, regulatory actions, and a surprising political event.

Reasons Behind Bitcoin and Ethereum Price Fall

The price of Bitcoin has struggled recently, dipping 8% between September 4 and 6 due to a combination of factors. Concerns over a weak U.S. labor market, fears of a tech bubble, and split expectations regarding the Fed’s rate cut are playing a crucial role in this downturn. 

The Fed meeting will announce its interest rate decision on September 18, with markets currently pricing in a 41% chance of a 25 basis point cut and a 59% chance of a 50 basis point cut. This uncertainty has fueled negative sentiment across the crypto market today, dropping Bitcoin price by 1.70% in a day and currently trading at $59,023.19.

On the other hand, Ethereum (ETH) has also taken a hit, falling 6% in the last 24 hours. The ETH price tumbled from $2,425 to  $2,317.04, with traders awaiting the Fed’s decision and dealing with a wave of FUD (Fear, Uncertainty, and Doubt). The ETH/BTC ratio has dropped to its lowest level since April 2021, hitting 0.038. 

Meme Coins and Trump Crypto Face Downfall

Adding to the market chaos, political meme coins have seen significant losses after news broke of Donald Trump dodging a second reported assassination attempt. Tokens associated with Trump, including MAGA (Trump Crypto), experienced drastic declines. Trump coin recorded an intraday drop of 10.96%, now trading at $2.14 with a $94 million market cap. The event sent shockwaves through the crypto market, further affecting sentiment around Trump coins.

Overall, the combination of a looming Fed decision, weak economic data, and political turmoil has led to a broader sell-off across the crypto market, raising questions about why crypto is crashing and whether recovery is on the horizon.

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