The crypto market is going through a tumultuous period, marked by another significant drop in prices. According to the latest information, more than $161 million has been liquidated due to the continued decline in the price of bitcoin, which has dropped by almost 3% in the last 24 hours. This situation has raised concerns among investors and market analysts.
Bitcoin drops 3% and $161 million disappears!
The crypto market, dominated by Bitcoin (BTC), has seen a decline of nearly 3% over the past 24 hours, reaching around $2.11 trillion on Monday, September 2. After ending the previous month below the crucial support zone between $58,000 and $60,000, Bitcoin started this week with a 3% downtrend, trading around $57,343.
With BTC price showing short-term bearish sentiment, on-chain data reveals that many investors are exiting the crypto market to secure their capital in stablecoins. The Bitcoin Fear and Greed Index has dropped to 26%, reflecting intense fear of a further price drop. Meanwhile, the Exchange Volume Momentum indicator shows a continued decrease in trading activity, indicating reduced investor interest in Bitcoin.
Could the FED save BTC?
Bitcoin’s current drop could well be attributed to the “September curse,” a trend observed since 2013 where Bitcoin often records losses during this month. Investors fear a repeat of these historic declines, thus reinforcing the bearish sentiment in the market.
The Fed’s expected interest rate cut this September could potentially support Bitcoin’s price. A rate cut could increase liquidity in financial markets, prompting investors to move to riskier assets like Bitcoin. However, the exact impact remains uncertain and will depend on the overall market reaction.
The crypto market is going through a period of increased volatility, with Bitcoin falling and investors turning to stablecoins. The FED’s decisions and historical trends from September could influence prices, but uncertainty remains high. At the time of writing, Bitcoin is up 0.37%, currently trading at around $57,523.
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