The crypto market is predominantly in the red, as evidenced by a snapshot from Crypto Bubbles. Most crypto assets have seen a dip in value over the past day.
Notable examples of this downward trend include drops in assets like BTC, WIF, BOME, RUNE, MNT, and SOL, indicating a widespread bearish sentiment.
Despite the overall market downturn, a few assets have shown resilience and are in the green. Assets such as BEAM, NOT, and KAS are bucking the trend, demonstrating positive performance in an otherwise negative market environment.
Per the recent data, the total crypto market cap is $2.3T, an indication of a 3.05% dip over the last day.
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Bitcoin and the Market Decline
Bitcoin has also faced a drop after its recent rally above $69.7k. BTC faced resistance at $70k and might be pulling back to lower levels for support before attempting to retest the $70k mark again.
Per data from CoinMarketCap at press time, Bitcoin trades at $63,951.19, down 3.27% in the last 24 hours. BTC is holding support at $63,746.01. A breach of this level could mean a further dip.
As the leading crypto, most altcoins tend to follow BTC and this this might be one of the reasons they are seeing a price dip today.
Read also: AI Predicts Ripple (XRP) Price in 2025 and Factors to Consider
Impact of FOMC’s Decision on Crypto Prices
Santiment, a crypto analytics firm, reported that the FOMC decision to maintain current U.S. interest rates triggered a drop in crypto prices. The firm noted that traders had been hopeful for a rate cut by Jerome Powell, which would have been the first since March 15, 2020.
The anticipation of a potential rate cut had fueled optimism among traders. Santiment suggested that when a rate cut eventually occurs, it would likely serve as a bullish signal for crypto traders.
Such a move could potentially boost both the stock and crypto markets for the remainder of 2024. However, the decision to hold rates steady led to disappointment in the market.
Moreover, Santiment observed that this outcome resulted in emotional sell-offs, contributing to the current market downturn.
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Show more +Seasonal Trends and Market Sentiment
Mister Crypto, a figure in the crypto community, tweeted,
“August and September are usually bearish months for #Bitcoin… Could this time be different?”
Historical trends suggest these months often see lower market performance, adding to the current bearish sentiment.
Overall, the combination of Bitcoin’s resistance at $70k, the FOMC’s decision, and historical seasonal trends has contributed to today’s market decline.
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