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 analyst Mikybull Crypto provided a bullish outlook for the XRP price, predicting that Ripple’s native token could rally to as high as $8 in this market cycle. The analyst also suggested that XRP could rally higher with this price target unlikely to be the top for the crypto in this bull run.
Why The XRP Price Could Rally To $8 In This Cycle
In an X post, Mikybull Crypto predicted that the XRP price could rip through $8 before a cycle top because of the current bullish fundamentals. Although the analyst didn’t elaborate on these bullish fundamentals, they likely include the optimism around Donald Trump’s pro-crypto administration.
The current US administration undoubtedly provides a bullish outlook for XRP for several reasons. One is the fact that the US Securities and Exchange Commission (SEC) looks likely to drop its appeal against Ripple. Such development is a huge positive for XRP, given the negative impact the lawsuit has had on the crypto before now.
Furthermore, CoinGape reported that Donald Trump is open to the idea of a US-based coins strategic reserve, including XRP. This is bullish for the XRP price, considering that this would lead to greater adoption for the crypto.
Meanwhile, the new SEC administration is more likely to approve the pending XRP ETF applications, which is also a positive for the crypto. In line with this, more asset managers are expected to file to offer an XRP ETF soon enough. REX Shares recently filed with the SEC to offer one, bringing the total number of applications to five.
A Price Surge To $3.80 Could Be Imminent
Crypto analyst CasiTrades suggested that an XRP price surge to $3.8 could be imminent. She noted that the crypto already hit the major wave 4 target at $2.88.
As such, the crypto analyst remarked that the major focus now is to flip these local levels into support before the takeoff to wave 5 at $3.80. She noted that XRP had hit $3.24 and rejected it a couple of times. However, the analyst expressed optimism that the third attempt could finally this level into support.
Meanwhile, CasiTrades warned that the XRP price could consolidate between $3.24 and $3.33 before a breakout. She added that a new high is also required to confirm the wave 5 target of $3.80.
With its current bullish momentum, there is no doubt that the XRP price could soon reach this short-term target. CoinGape recently reported that Ripple’s native crypto has recorded an impressive 36.9% gain in the last month.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. 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 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.
Donald Trump’s decentralized finance (DeFi) project World Liberty Financial has purchased a massive 14,403 Ethereum in the last 24 hours, cementing further confidence in the altcoin. The project made a fresh investment of $16 million in buying these coins and is already sitting on profit as the ETH price surged 5% to $3,4000.
World Liberty Financial Stashes More Ethereum
Trump’s World Liberty Financial (WLFI) has continued to accumulate Ethereum, spending a total of 48 million USDC to acquire 14,403 ETH at a price of $3,333 in the past 12 hours, as per data from Arkham Intelligence.
The organization now holds 40,765K ETH, valued at approximately $138.5 million. Additionally, World Liberty has a significant amount of ETH stored on Coinbase, which they recently deposited.
This recent accumulation puts behind the doubts that the Donald TrumpDeFi Project was offloading its ETH. As World Liberty Financial clarified, it was just part of routine transfers to new wallets and not part of their selling.
More Ethereum Purchases Coming?
On the other hand, Eric Trump, the executive vice president of the Trump organization has hinted that there’s more to come ahead.
Wait until you see what they do tomorrow! 🚀🚀 @worldlibertyfi https://t.co/v8eRDFImHo
— Eric Trump (@EricTrump) January 20, 2025
Commenting on the recent development around the TRUMP meme coin launch as well as the MELANIA meme coin launch, Donald Trump Jr. wrote:
“We are all extremely proud of what we continue to accomplish in crypto. $Trump is currently the hottest digital meme on earth and I truly believe that World Liberty Financial will revolutionize DeFi/Cefi and will be the future of finance. We are just getting started!”
ETH Price Surge to $4,000 Begins
Looking past last week’s underperformance, Ethereum bulls have charged in once again! In the last 24 hours, the ETH price has surged 5.11% moving past $3,400 levels with daily trading volumes jumping 117% to $68 billion. In the last 24 hours, the total ETH liquidations have shot up to $209 million as per the Coinglass data.
Popular crypto analyst CrediBULL crypto stated that ETH has bounced back from the strong support levels of $3,100 and is on the way to its immediate target of $4,000.
Popular analyst Ali Martinez highlights that during every bullish cycle, Ethereum (ETH) has traded above the 3.2 MVRV Pricing Band, a level that currently stands at $7,000.
In every bullish cycle, #Ethereum $ETH has traded above the 3.2 MVRV Pricing Band. This level currently sits at $7,000! pic.twitter.com/AgCIgexQJH
— Ali (@ali_charts) January 20, 2025
World Liberty Financial (WLFI) Token Sale
World Liberty Financial, has successfully completed the pre-sale of its token and is now offering more at a 230% markup due to overwhelming demand. Launched in September, the platform initially planned to sell 20% of its total 100 billion. However, the project is now offering an additional 5 billion for sale at 5 cents each. The official announcement from the project notes:
“We’ve completed our mission and sold 20% of our token supply! Due to massive demand and overwhelming interest, we’ve decided to open up an additional block of 5% of token supply”.
Tron founder Justin Sun took this opportunity with TRON DAO boosting its investment in World Liberty Financial by adding an additional $45 million. With this new injection, TRON DAO’s total investments in the DeFi venture now reach $75 million.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
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.
In an effort to uplift market sentiment, Coinbase CEO recently announced plans to offer ‘tier 1 support’ to Solana following transaction glitches on the crypto trading platform. Notably, the exchange’s CEO, Brian Armstrong, revealed that the transaction glitch on the network was fixed. Further, efforts to prevent such issues ahead were also underway.
As a result, the crypto exchange giant now eyes increased support for the network, mirroring the same level offered to Bitcoin and Ether.
Coinbase CEO Reveals Tier 1 Support Underway
In an X post by Brian Armstrong dated January 22, the Coinbase CEO revealed that the crypto exchange is aiming to provide “tier 1 support for Solana, with the same level of support as Bitcoin, Ethereum, and Base.” This statement indicated that after recent withdrawal issues faced by users on the crypto exchange, efforts to prevent such events in the future were in the pipeline.
Notably, Armstrong stated, “It’s clear we need to step up our game on Solana, scale our infrastructure, and provide native support for common use cases like DEX/memecoin trading.” Although, the CEO’s statements underscored that although the crypto trading platform is currently unable to tackle the surge in activity, a positive outlook for users lies ahead.
SOL Transaction Glitch Fixed: Coinbase CEO
Meanwhile, the Coinbase CEO has also revealed that the exchange has “the Solana backlog triaged, and transactions should generate quickly again.” This statement comes against the backdrop of a SOL withdrawal halt, wherein leading crypto exchanges Coinbase and Binance halted withdrawals for the crypto amid high withdrawal volumes.
In turn, some traders remain unhappy due to the loss incurred amid the network glitch, whilst others look to withdraw funds as the issue is fixed amid a broader crypto market recovery.
SOL Price Surges Over 7%
As of press time, SOL price pumped nearly 7.5% intraday and is sitting at $257.48. The coin’s 24-hour low and high were $236.36 and $259.83, respectively. Intriguingly, the crypto’s rising trajectory in tandem with the transaction trouble fix, as revealed by the Coinbase CEO, has ignited significant investor enthusiasm. Moreover, the current pump also mirrors the broader crypto market trend, as mentioned above.
Also, it’s worth mentioning that the Solana network saw a huge surge in activity amid the meme coins TRUMP and MELANIA’s recent launch, a potential reason why withdrawal volumes on Coinbase surged. In light of this activity surge, a recent SOL price analysis by CoinGape revealed that the token may experience significant growth ahead. In turn, crypto market watchers continue to eye the token with bullish long-term prospects amid recent developments.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
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.
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