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Crypto Market Crash: Bitcoin Slips Under $110K, XRP Down 5% Amid ‘Redtember’ Fears
The cryptocurrency market has taken a sudden and unexpected turn for the worse. In just the past 24 hours, total market capitalization has plummeted by 3.87%, with a loss of over $143 billion to stand at $3.75 trillion according to CoinMarketCap data. This drastic downturn is not limited to Bitcoin alone; it appears that virtually all top coins have been affected.
Bitcoin’s price has taken the biggest hit, falling an astonishing 3.77% in the past day. Its new low of around $108,675 has left many investors reeling and searching for answers. Ethereum is also down by nearly 4%, dropping to a current value of approximately $4,340.
Meanwhile, XRP, one of the biggest losers in this downturn, has tumbled over 5% to $2.83. Solana’s price has dropped to $205, while Dogecoin and Cardano have both lost around 4-5%, with their new prices at $0.82 and $0.85 respectively.
As you might have expected, the cause of this sudden crash is not difficult to pinpoint. The removal of Fed Governor Lisa Cook by Trump on August 28 has sparked a heightened sense of uncertainty over the Federal Reserve’s upcoming rate decision in September. Market analysts are now warning that history may be repeating itself.
For those who may not recall, every major four-year crypto cycle has delivered steep September losses. In 2013, Bitcoin dropped a whopping 15% at the start of the month. In 2017, the market saw an even more drastic 40% decline during the same period. And, most recently in 2021, Bitcoin plummeted by 25% between September 7 and September 21.
If we look back on these past cycles, it is clear that this September could also be a time of increased risk for investors. A higher-than-expected PCE print could send shockwaves through the market, potentially leading to two sharp red candles similar to those seen in previous cycles. Bitcoin’s price could potentially plummet by another 10-20%, while altcoins may drop by as much as 30-50%.
Looking ahead, many experts are warning that a correction of this magnitude could be exactly what the cryptocurrency market needs to shake off its current complacency and find new footing. This correction period typically sets the stage for significant gains in Q4.
Therefore, investors should be watching Bitcoin closely, as it may potentially rebound from the $100,000 support zone before this final quarter begins.
Source: coinpedia.org
