Altcoin
Top 5 Reasons Why Bitcoin, ETH, SOL, XRP, Meme Coins Are Crashing
The crypto market has lost $160 billion in a week as the market cap plunges to $1.98 trillion from $2.14 trillion. Leading cryptocurrencies Bitcoin and Ethereum prices today tumbled to a low of $55,606 and $2,306, respectively. Other top altcoins such as BNB, Solana, XRP, Dogecoin, Toncoin, Cardano, and meme coins also succumbed to the crashing crypto market, triggered by factors such as macroeconomic events, bearish sentiment, and technical chart weakness.
Here’s Why Crypto Market Falling
The crypto market continues crashing despite U.S. Fed officials are upbeat on interest rate cuts in September as inflation and the labor market in the United States are slowing. Pro-XRP lawyer John Deaton’s victory in the Republican primary election indicates positive development for the crypto market and Ripple community. Let’s look at the top 5 reasons why the crypto market is crashing today:
1. September Is Bearish For Stocks and Crypto Market
Historically, the month has been tough for the crypto market as well as other asset classes. Bonds were lower in 8 out of the last 10 September and gold has been lower every year since 2017. Thus, Bitcoin, ETH, XRP, SOL, and meme coins are falling today.
Dow Jones fell 1.51%, the S&P 500 tumbled 2.12% and the Nasdaq Composite plunged 3.26%, which is their worst drop since the August 5 selloff.
Coinglass data indicates that over $200 million in crypto were liquidated in the last 24 hours. Among these, more than $173 million in longs and $27 million in shorts were liquidated amid the bearish sentiment.
Moreover, over 75K traders were liquidated and the largest single liquidation order happened on crypto exchange Binance as someone sold ETH for USDT valued at $2.94 million. However, investors have remained overall bullish on XRP.
2. Spot Bitcoin (BTC) ETF and Spot Ethereum (ETH) ETF Outflows
Bitcoin ETFs in the U.S. saw a fifth consecutive outflow, degrading the crypto market sentiment among investors. On Tuesday, spot Bitcoin inflows recorded a net outflow of $287.8 million. Surprisingly, Fidelity Bitcoin ETF (FBTC) saw the highest outflow of $162.3 million, surpassing even the outflows from GBTC recently.
Spot Ether ETFs saw a net outflow of $47.4 million on Tuesday. It has started the first trading day of the month with outflows not seen in the previous weeks. Ethereum price is struggling to hit new ATH and currently trades below $2,400, 4% down in the last 24 hours.
Ether ETFs Went Backward in First Month.. flows -$476m as the newbies couldn’t overcome the $ETHE unlock, too powerful a force (this is why I reiterated how heroic the New Nine bitcoin ones were) but good news is unlock will end, there’s light at end of tunnel via @JSeyff pic.twitter.com/Y8QphnFAXq
— Eric Balchunas (@EricBalchunas) September 3, 2024
3. Bank Of Japan Governor Affirms Further Rate Hike
Bank of Japan Governor Kazuo Ueda in a document submitted to a government panel chaired by outgoing Prime Minister Fumio Kishida reiterated further rate hikes. Japanese stock index Nikkei 225 tumbled 4.24% today on BOJ rate hike, Nvidia-led tech selloff, and US recession cues.
As CoinGape earlier reported, economists surveyed revealed that BOJ will likely hike rates again by the end of the year. Also, Pacific Investment Management expected a rate hike in January.
Traders fear a crypto market crash is imminent due to growing Japanese yen carry trades by hedge funds and corporate players.
4. Bitcoin Price Dropped After Weak ISM Manufacturing PMI Data
The crypto market extended crash yesterday immediately after the weak ISM Manufacturing PMI data showed factory activity slowed for a fifth consecutive month. ISM Manufacturing PMI came in at 47.2 in August, missing market expectations of 47.5.
The weak US manufacturing data has fueled recession fears. Traders now eye upcoming jobs data including non-farm payrolls, unemployment rate, and JOLTs job opening this week. Citi analysts suggested that a job growth of 125,000, combined with an unemployment rate of 4.3%, will cause the Federal Reserve to cut interest rates by 50 basis points.
5. DOJ Subpoena Nvidia for Antitrust Investigation
US DOJ has intensified its antitrust investigation into Nvidia by issuing subpoenas to the AI chip giant. Investors reacted immediately amid the new level of scrutiny from the regulators. This brought back the Microsoft antitrust case in focus which crashed markets in 2000.
Notably, the Nasdaq stock index fell by 75% from March 2000 to October 2002, tech stocks erased most gains since the bubble started to expand.
Varinder Singh
Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto expert Egrag Crypto has again predicted that the XRP price could rally to as high as $27. The analyst has also revealed the exact timeline for when the altcoin could record this massive price surge.
Expert Reveals Time For XRP Price To Hit $27
In an X post, Egrag Crypto asserted that the XRP price can hit $27 in 60 days. The expert remarked that historical patterns indicate that the altcoin can reach this target within this timeframe.
Based on this price prediction, XRP could reach this $27 target by June, marking a 1,250% gain for Ripple’s native crypto. The expert’s accompanying chart showed that he was alluding to the 2017 bull run as to why the altcoin could record such a parabolic rally.
In 2017, XRP recorded a historic gain of over 60,000% as it rallied to its current all-time high (ATH) of $3.8 the following year. As such, based on history, a 1,250% increase is nothing for the altcoin.
In the meantime, the XRP price still boasts a bearish outlook thanks to the sentiment in the broader crypto market. As CoinGape reported, Ripple’s coin could drop to the next major support levels at $1.79 and $1.56 if it fails to hold above $2.03.
Decision Time For The Altcoin
In an X post, crypto analyst CasiTrades stated that it is decision time for the XRP price. She noted that the altcoin is showing strength with a bounce right back to the first key test at $2.17. She added that this is the resistance level she wants to see flip into support, as it might be the “most important price of the week.”
The analyst stated that XRP must reclaim this level to build momentum. She added that the $2 level remains a valid target if the $2.17 level rejects. Meanwhile, CasiTrades revealed that $2.70, $3.05, and $3.80 are the major resistance zones once the upward trend is confirmed.
The analyst also mentioned that the XRP price is now fully inside the Fibonacci Time Zone 3, which spans most of April. She affirmed that this is the breakout window market participants have been preparing for and that all signs point to a macro wave.
CasiTrades affirmed that the structure is clean. The RSI divergence has confirmed the bottom, while the subwaves are aligning well with the larger targets. If the next leg pushes XRP back above $2.17 with momentum, she claimed that market participants may finally see obvious signs of Wave 3. Interestingly, the analyst added that if the altcoin clears $2.70 this week, it may break the $1,000 price extension.
For now, investors may remain cautious, especially seeing how XRP fell after the PMI and JOLTS data release earlier today. Donald Trump is also set to announce reciprocal tariffs tomorrow, which could spark a massive price crash.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
A recent Binance update has triggered massive liquidations while sending Solana memecoin ACT into a steep correction. At first, pundits blamed market maker Wintermute for the jarring declines but Binance’s update to leverage and margin tiers appears to be the culprit.
Several Altcoins on Binance Suffer Massive Corrections
According to an X post, several altcoins listed on Binance took a major hit, dropping by double-digit percentages. The hardest hit of the lot was Solana memecoin ACT, experiencing a sudden drop of over 50% in 30 minutes.
Other altcoins including DEXE and DF equally recorded steep declines of 23% and 16% respectively in the same window. The price slump left traders scratching their heads but a consensus formed that sizable sell orders were behind the declines.
“The sudden dips were triggered by large sell orders executed in a short time frame, leading to a significant surge in spot trading volume,” said one pundit.
Others turned to market maker Wintermute as the trigger for the selloff. However, Wintermute CEO Evgeny Gaevoy denied responsibility while noting that the market maker reacted “post move.”
The decline comes amid a broader market recovery with several cryptocurrencies including Compound (COMP) gaining 70%.
What Triggered The 50% Decline For Solana Meme Coin
A Binance update on leverage and margin tiers on specific tokens like ACT triggered the massive declines. According to an April 1 announcement, the top exchange has updated the margin tiers of several perpetual contracts, noting that existing positions will be affected.
Following the move, one ACT whale got liquidated for $3.79 million at $0.1877, triggering a broad selloff. Former FTX community manager Benson Sun noted that traders had less than 3 hours to respond to the change, criticizing Binance for the move.
“Before changing the rules, Binance should have evaluated how many positions would be closed,” said Sun. “If there are market makers with large positions, they should have notified them in advance.”
Within hours of MUBARAK’s listing, the memecoin tumbled by 40% with Binance CEO Changpeng Zhao downplaying the impact of a listing on prices. Binance has drawn criticism in recent days following its exclusion of Pi Network from its Vote To List initiative.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
A crypto market crash looks imminent, with Bitcoin, Ethereum, XRP, and Dogecoin witnessing notable declines. This price crash happened following the release of weak manufacturing PMI and JOLTS data, which provides a bearish outlook for the market.
Crypto Market Crash: BTC, ETH, XRP, & DOGE Decline
CoinMarketCap data shows that a crypto market crash could be on the horizon, with the Bitcoin price sharply dropping below $83,000 from a daily high of around $84,400. Altcoins such as Ethereum, XRP, and DOGE also witnessed sharp declines.
This market crash occurred following the release of weak ISM manufacturing PMI and JOLTS data. The March PMI data dropped to 49, below expectations of 49.5 and lower than the 50 recorded in February.
The US JOLTS job openings for February came in at 7.568 million, below the expected 7.690 million and lower than the 7.762 million recorded in January. These data add to several macro fundamentals that paint a bearish outlook for the market.
This crypto market crash could persist, with China, Japan, and South Korea agreeing to respond to Donald Trump’s proposed tariffs. Trump is set to announce a number of reciprocal tariffs tomorrow, which could significantly harm the market as it sets off a trade war between the US and other nations.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
BeInCrypto US Morning Briefing: Standard Chartered and Bitcoin
SUI Price Stalls After Major $147 Million Token Unlock
Bitcoin Could Serve as Inflation Hedge or Tech Stock, Say Experts
Circle Files for IPO
Solana Faces Resistance While ETH Sees DEX Volume Boost
Hill Rejects Interest-Bearing Stablecoins Despite Armstrong’s Wish
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
2.52 Million Altcoins Are Ruining Crypto’s Future
Animoca Brands Valuation Tanks 75% In Two Years, Here’s Why
Crypto exchange BingX hacked for $43 million
Are The Big Players Losing Interest?
Hong Kong’s Securities Association Tips Authorities On Crypto Self-Regulation
Coinbase cbBTC Set to go Live on Solana
-
Market24 hours agoCardano (ADA) Whales Hit 2-Year Low as Key Support Retested
-
Altcoin18 hours agoA Make or Break Situation As Ripple Crypto Flirts Around $2
-
Market18 hours agoXRP Bulls Fight Back—Is a Major Move Coming?
-
Market17 hours agoIs CZ’s April Fool’s Joke a Crypto Reality or Just Fun?
-
Market16 hours agoBitcoin Price Battles Key Hurdles—Is a Breakout Still Possible?
-
Bitcoin14 hours agoBig Bitcoin Buy Coming? Saylor Drops a Hint as Strategy Shifts
-
Market23 hours agoTop 3 Made in USA Coins to Watch In April
-
Market21 hours agoEthereum Price Faces a Tough Test—Can It Clear the Hurdle?
✓ Share: