Possible Causes and Market Impact

The global crypto market is experiencing a significant decline, with major players such as Bitcoin (BTC), Ethereum (ETH), BNB, and Solana entering a bearish phase. The total crypto market cap has dropped to $2.05 trillion, reflecting a 2.54% decline over the past day. Several major factors are contributing to this decline, including market uncertainty ahead of the Federal Reserve’s interest rate decision, regulatory actions, and a sudden political event.

Reasons for Bitcoin and Ethereum Price Drop:

Bitcoin has struggled recently, falling 8% between September 4 and 6 due to a combination of factors. Concerns over the weak US labor market, fears of a tech bubble, and divided expectations regarding interest rate cuts by the Federal Reserve are playing a crucial role in this decline.

The Fed will announce its interest rate decision on September 18, with markets currently pricing in a 41% chance of a 25bp cut and a 59% chance of a 50bp cut. This uncertainty has fueled negative sentiment in the cryptocurrency market today, sending Bitcoin down 1.70% in a single day and currently trading at $59,023.19.

On the other hand, Ethereum (ETH) has also been affected, falling 6% in the last 24 hours. ETH price dropped from $2,425 to $2,317.04, as traders await the Fed decision and deal with a wave of FUD (fear, uncertainty, and doubt). The ETH/BTC ratio dropped to its lowest level since April 2021, reaching 0.038.

Meme Coins and Trump Crypto Face a Fall.

In addition to the market chaos, political meme coins have seen significant losses after news broke that Donald Trump had avoided a second assassination attempt. Trump-related tokens, including MAGA (Trump Crypto), saw significant declines. Trump Coin registered a 10.96% intraday decline and is now trading at $2.14 with a market cap of $94 million. The event sent shockwaves through the cryptocurrency market, further impacting sentiment around Trump Coins.

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