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<p>The post <a href="https://coinpedia.org/news/why-crypto-market-crashed-today-bitcoin-and-altcoins-plunge/">Why Is The Crypto Market Down Today?</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>The crypto market has had a rough start this September, with its total value dropping by nearly $20 billion to around $2.03 trillion in the last 24 hours. Bitcoin, the biggest cryptocurrency, is facing strong selling pressure and has fallen to <a href="https://markets.coinpedia.org/bitcoin/">around $57,270</a>, a level last seen in mid-August.</p> 
<p>However, the market sentiment is currently bearish, with traders closely watching the $55,724 support level. If Bitcoin falls below this level, it could drop further to around $49,000.</p> 
<h2 class="wp-block-heading" id="h-investor-shift-to-stablecoins">Investor Shift to Stablecoins</h2> 
<p>Historically, September has been a challenging month for Bitcoin, often marked by consolidation or downward movements. Over the years, September has often been a month when prices go down or stay flat, with typical losses of about 5-10%. This year seems to be following that trend.</p> 
<figure class="wp-block-image size-large">
 <img decoding="async" width="1024" height="467" src="https://image.coinpedia.org/wp-content/uploads/2024/09/02114942/Overall-Bitcoin-Price-chart-1024x467.jpeg" alt="" class="wp-image-345711" srcset="https://image.coinpedia.org/wp-content/uploads/2024/09/02114942/Overall-Bitcoin-Price-chart-1024x467.jpeg 1024w, https://image.coinpedia.org/wp-content/uploads/2024/09/02114942/Overall-Bitcoin-Price-chart-300x137.jpeg 300w, https://image.coinpedia.org/wp-content/uploads/2024/09/02114942/Overall-Bitcoin-Price-chart-768x350.jpeg 768w, https://image.coinpedia.org/wp-content/uploads/2024/09/02114942/Overall-Bitcoin-Price-chart-150x68.jpeg 150w, https://image.coinpedia.org/wp-content/uploads/2024/09/02114942/Overall-Bitcoin-Price-chart.jpeg 1200w" sizes="(max-width: 1024px) 100vw, 1024px">
</figure> 
<p>Recently, after facing resistance at the $65,000 mark, <a href="https://coinpedia.org/news/bitcoin-price-alert-btc-hits-lowest-hash-price-is-now-the-best-time-to-buy/">Bitcoin’s price</a> has been falling. This decline comes as capital flows for Bitcoin have shifted towards stablecoins, suggesting that investors are becoming more cautious.&nbsp;</p> 
<p>This shift shows that people are uncertain about Bitcoin and other cryptocurrencies at the moment. As a result, the market cap for stablecoins has surged to an all-time high, nearing $170 billion.</p> 
<h2 class="wp-block-heading" id="h-big-sell-offs-from-mt-gox-amp-u-s-govt">Big Sell-Offs from Mt. Gox &amp; U.S. Govt</h2> 
<p>Another factor adding to the market’s decline is the potential for big sell-offs. The U.S. government holds a large amount of Bitcoin, over 203,000 coins worth about $12.1 billion.&nbsp;</p> 
<p>Meanwhile, <a href="https://coinpedia.org/price-analysis/bitcoin-may-drop-to-54000-as-mt-gox-moves-860-mln-in-btc/">Mt. Gox is set to release</a> another 46,000 Bitcoins, worth over $2.7 billion, to its creditors. Together, these two sources could flood the market with over $14.8 billion worth of Bitcoin, potentially pushing prices down even further.&nbsp;</p> 
<h2 class="wp-block-heading" id="h-decline-in-on-chain-activity">Decline in On-Chain Activity</h2> 
<p>Analysts have also noticed a drop in exchange-related <a href="https://app.intotheblock.com/coin/BTC">on-chain activity</a>, indicating that fewer people are trading Bitcoin and other cryptocurrencies. Additionally, each recent drop in Bitcoin’s price has been deeper, and the recoveries have been weaker.&nbsp;</p> 
<p>The data from August indicates that Bitcoin could be nearing a critical turning point this September, which may lead to a further decrease in demand.</p> 
<h2 class="wp-block-heading" id="h-hope-for-recovery">Hope for Recovery</h2> 
<p>Despite the current challenges, there is still a chance for the market to bounce back. Some experts believe that if the U.S. Federal Reserve <a href="https://coinpedia.org/news/ethereum-ready-for-a-huge-surge-analyst-predicts-a-3000-rally-as-fed-cuts-rates/">decides to cut interest rates</a> on September 18, it could boost Bitcoin and other cryptocurrencies.&nbsp;</p> 
<p>According to the FedWatch Tool, there is a 30% chance of a 50 basis point rate cut, which could trigger a rally in Bitcoin. For now, Bitcoin needs to climb back above its moving averages to start a meaningful recovery. If it succeeds, the price could rise toward $65,000 and possibly even reach $70,000.&nbsp;</p> 
<p>However, the immediate focus is on maintaining key support levels. If Bitcoin fails to hold these levels, it could face further declines, with the next major support at $54,000.</p>

Why Is The Crypto Market Down Today?

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