The cryptocurrency market experienced a significant downturn, raising investor concerns as Bitcoin (BTC) prices slipped to $56,000. This drop was mirrored by other major altcoins, including Ethereum (ETH), Solana (SOL), and XRP, all of which saw substantial declines. The bearish trend was largely attributed to the U.S. Department of Justice’s (DoJ) recent crackdown on Nvidia, which has sent shockwaves across the broader market.
Source : Coinpedia Markets
Source: Coinpedia Markets
What's causing today's drop in the crypto market? Let's dive into the key factors.
Impact of the DoJ’s Crackdown on Nvidia:
Nvidia fell 9.5% on Sept. 3, closing the day at 8. Source: Google Finance.Â
The U.S. Department of Justice issued subpoenas to Nvidia over potential antitrust violations.
Resulted in a 2.12% drop in the S&P 500.
The global crypto market cap fell by 4.60%.
Crypto Prices Reflect Broader Market Downtrend:
Bitcoin dropped to $56,000.
Ethereum fell to $2,300.
Solana and XRP declined by 2% to 6%.
The U.S. equities market, especially the S&P 500, showed weak performance.
Crypto Market Volatility and Liquidations:
Total crypto liquidations. Source: Coinglass
On September 3, $65.08 million in long positions were liquidated in the crypto market.
Short traders lost $35.24 million in the same period.
Accelerated liquidation of long positions increased market pressure.
Market Outlook and Federal Reserve Speculation
Source: FedWatch
As the market braces for further developments, attention has turned to the Federal Reserve’s upcoming decision on interest rates. The futures market strongly anticipated at least a quarter-point cut on September 18, with a 37% chance of a larger reduction of 50 basis points. This speculation added another layer of uncertainty to an already volatile market.
The cryptocurrency market faced significant challenges, with Bitcoin dropping to $56,000 amid broader market concerns fueled by the DoJ’s crackdown on Nvidia. The ongoing volatility, coupled with speculation about the Federal Reserve’s next move, has left investors on edge, unsure of what the near future holds for the crypto sector.
Any Feedback?
Get in touch with us here