Crypto Market Crashes: Heres Top Reason Why Bitcoin, Altcoin, & Memecoin Are Plummeting
The post Crypto Market Crashes: Heres Top Reason Why Bitcoin, Altcoin, & Memecoin Are Plummeting appeared first on Coinpedia Fintech News
Despite positive news about potential interest rate cuts in the U.S., Bitcoin (BTC) and Ethereum (ETH) have seen their prices tumble, with other major cryptocurrencies like Solana (SOL), XRP, and various meme coins have also been affected. As the market continues to plummet, several key factors have been identified as the main drivers behind this ongoing crash.
Key Reason Why Crypto Market Crash
Bank of Japans Rate Hike Concerns
One of the main triggers behind the recent crypto market crash is the Bank of Japans signaling of potential further rate hikes. This has led to a 4.24% drop in the Nikkei 225 index. Traders are concerned that these rate hikes could lead to increased volatility, impacting the crypto market as well.
Bitcoin and Ethereum ETF Outflows
In a move that has further shaken confidence, Bitcoin and Ethereum exchange-traded funds (ETFs) have recorded substantial outflows of $287.8 million on September 3. Fidelitys Bitcoin ETF saw the largest outflow, totaling $162.3 million. Ethereum ETFs have also been affected, with a $47.4 million outflow. This steady outflow of funds reflects growing caution among investors, further contributing to the overall market decline.
Septembers Historical Downturn
September has traditionally been a tough month for various asset classes, including cryptocurrencies. Historically, bonds and gold have performed poorly in this month, and this year is no exception. Meanwhile, the crypto fear and greed index is at 27, indicating widespread fear among investors. This has led to a cautious approach, with many choosing to sit on the sidelines
Nvidia Faces Antitrust Scrutiny
The U.S. Department of Justice has ramped up its antitrust investigation into Nvidia, issuing subpoenas to the company. This scrutiny has reminded investors of past market crashes, particularly the one involving Microsoft in 2000.
The increased regulatory pressure on a major tech player like Nvidia has had a ripple effect, unsettling not just tech stocks but also the global crypto market.
Weaken US Economic Data
Adding to the markets woes, recent U.S. economic data has not been encouraging. The recent ISM Manufacturing PMI data showed a slowdown in factory activity, coming in at 47.2, below the expected 47.5. This weak data has intensified fears of a recession.
Traders are now looking closely at upcoming job reports, which could influence the Federal Reserves decision on interest rates.
Text source: Coinpedia – Fintech & Cryptocurreny News Media| Cr
