Why is crypto market crashing today? (26 Sep)

The total crypto market capitalization fell more than 2% to $ 3.85 trillion in the last 24 hours on 26 September when Bitcoin dropped below $ 109,000 thresholds and more than $ 1.2 billion in liquidations came on the market.

According to data from Coingecko, only about 10 of the top 100 cryptocurrencies per market hairstyles succeeded in staying in the green today, with large altcoins such as BNB (BNB) and Solana (SOLAN), register losing more than 4% on the day.

Today’s decline extended weekly losses for large cryptocurrencies, with Bitcoin (BTC) in the last 7 days more than 6.5% decrease, while other Majors such as Ethereum (ETH), XRP (XRP) and Dogecoin (Doge) loses of 13.2%, 10% and 18.4% respectively.

A number of Bearish catalysts played in the game that caused the market -wide sale.

Crypto -Markten were rattled today after President Donald Trump of the United States announced Fresh rates this time on pharmaceutical products, Big-Rig trucks, home renovation luminaires and furniture, which commemorated concern about a renewed global trade war and its overflow effects on risk provisions.

Trump’s rate-related announcements have consistently led to increased volatility for the crypto markets, as can be seen several times this year. This time, the trader sentiment was already vulnerable about the fear that the Federal Reserve may not be able to lower the interest rates as the investors expect.

In his last appearance, FED chairman Jerome Powell took a ragless attitude on the possibility of further interest rate letings this year, while other FED functionaries, including Beth Hammack and Austan Goolsbee, encouraged the bank to be careful when reducing the rates.

Their comments have worked as fertile land for a risk-off environment, which means that traders have little reason to retain risk provisions and send liquidity to traditional ports such as gold.

Bitcoin options

Traders are also delivered, because around $ 22.3 billion in crypto options will end today, including $ 17.06 billion tied to Bitcoin.

As the expiry date approaches, the price of BTC is often attracted to the ‘Max Pijnpunt’, the striking level where buyers of options run the biggest losses and sellers the most benefit.

Before the expiry of this month, Beerarish positions are concentrated in the range from $ 95,000 to $ 110,000. If Bitcoin does not live the level of $ 110,000 against 8:00 AM UTC, PUT options can achieve an advantage of approximately $ 1 billion, which may add further downward pressure to the already bleeding market.

Crypto -fear and greed index touches anxiety area

At the same time, the current environment has weighed the market sentiment. In particular, the crypto -fear and greed -index at the age of 29 was slipped in anxiety area after the fall of this month’s High 73.

Traders also weigh the fact that September is historically a bearish month for Bitcoin, who probably influences the broader market sentiment. According to Coinglass data, the average and median returns of Bitcoin are around -3% because the flagship Crypto Crypto has losses in losses in losses.

Liquidations

Another reason for the crypto marketing today is the more than $ 1.2 billion in liquidations that affect the market on the past day. This resulted in almost $ 1.1 billion in liquidation from long positions, facts from Coinglass Show.

Such heavy, long liquidations are bearish for traders because they force buyers of leverage to leave their positions, which therefore stimulates an increased sales pressure on prices and encourages traders to stay on the sidelines until the situation cools.