Why Is the Crypto Market Down Today?
10:26 AM-Sep 16
BTCUSD
In the news today:
• Stablecoin issuers Paxos, Tether, Techteryx, and Circle blacklist Lazarus Group-associated wallets, according to ZachXBT. This led to $1.65 million worth of crypto assets being frozen over the weekend.
Russia is planning to build 15 new crypto-mining data centers. Komi's regional governor, Vladimir Uyba, revealed that the initial two centers will be established in Mikun and Sindor.
The Crypto Market Is in The Red
The total cryptocurrency market cap has dropped below $2 trillion, standing at $1.98 trillion after losing $72 billion in the past 24 hours. This significant downturn stems from market uncertainty over the anticipated interest rate cuts in the US.
With the Federal Open Market Committee (FOMC) meeting scheduled this week, there is a 59% chance of a 50 basis point (bps) cut and a 41% probability of a 25 bps reduction.
Due to this lack of clarity ahead of the FOMC meeting, the crypto market continues to experience turbulence. With less than 72 hours remaining until the meeting, the possibility of the market cap dropping further to the $1.92 trillion support level is high.
However, if favorable conditions emerge in the next two days, there is a possibility for the total crypto market cap to recover. Reclaiming the $2 trillion support level could spark a recovery, helping the broader market regain confidence.
Bitcoin's Price Cannot Sustain Above $60,000
Bitcoin has once again struggled to hold the $60,000 support level, marking the second failure in three weeks. Currently, BTC is trading at $58,261, reflecting a 3% decline over the last 24 hours.
This price dip has raised concerns about the cryptocurrency's near-term performance. With volatility continuing to impact the market, Bitcoin's ability to regain momentum remains uncertain.
BTC is now approaching a critical support floor at $57,270, which has previously served as a base for consolidation. Alongside this, $61,725 represents the upper limit of said consolidation.
