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The crypto market experienced a significant pullback with rising concerns in the Middle East, FED uncertainty, and ETF outflows.
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Bitcoin slashed below $76,500, and its next price action could depend on macro factors easing pressure over the crypto markets
The crypto market is facing another wave of selling pressure, with Bitcoin plunging after failing to sustain its recent recovery. The BTC price is currently trading close to $77,000, down from $78,500 in the past 24 hours. Besides, all the other popular altcoins are also falling significantly due to selling pressure, as the market capitalization also plunges by 1.55%.Â
The decline comes as investors grow more cautious across global financial markets. With the crypto markets losing momentum near recent highs, traders are now assessing whether the move represents a short-term correction or the start of a deeper market downturn. So whatâs driving the crypto market correction?
Crypto Market Today: Bitcoin & Altcoins Face Renewed Selling Pressure
The broader crypto market shows clear signs of weakness, with total market capitalisation down about 1.55% over the past 24 hours to $2.62 trillion. Trading activity has picked up, with the 24-hour volume at roughly $84.3 billion, up about 3.1%. Bitcoin remains the marketâs anchor, with BTC dominance at 59%, but the star crypto is also under pressure, trading around $77,225. Ethereum has remained restricted below $2500, but his displaying strength against Bitcoin by holding above $2,450.
Meanwhile, XRP plunges over 3% to $1.34, while BNB trades at $714, and Solana and Hyperliquid drop below key support at $100 & $80, respectively. Stablecoins remain a major part of market activity, with their combined 24-hour volume exceeding $90 billion, highlighting the continued movement of capital through the stablecoin side of the market.
The top gainers among the top 100 cryptos are Raydium with over a 27.23% jump, followed by ether.fi with 9.60% and Aptos & Polkadot by 3.64% & 2.10%, respectively. Besides, Zcash plunges by 13.23%, while it continues to hold above the $1000 support. This broad-based weakness suggests that todayâs move is not limited to Bitcoin or a single sector of the crypto market. Therefore, the bigger question is what is driving investors to reduce risk across crypto.
Top Reasons Behind Todayâs Crypto Market Correction
The immediate trigger is coming from the broader financial markets, where rising oil prices, inflation concerns & changing FED expectations are pushing investors toward a more defensive stance. Here are the top reasons that dragged the crypto markets lower today.
Middle East Tensions Sell Oil Prices Above $100
Escalating tensions around key Middle East shipping routes have pushed Brent crude as high as $109.97 per barrel. Brent is on track for an approximately 11% weekly gain, raising concerns about further energy-supply disruptions.
FED Rate-Hike Bets Are Rising
Markets are becoming increasingly concerned that the FED may need to keep monetary policy tighter to contain renewed inflation pressure. The probability of a 25-basis-point FED rate hike next week has risen to around 71%, up from 61% in the previous sessions.
Inflation Concerns Are Back
The latest US PPI showed producer prices rising 0.4% in August and 5.4% year over year, keeping inflation firmly on investorsâ radar. A hotter than expected reading could strengthen the case for tighter FED policy, adding another layer of pressure to the crypto market.
Treasuryâs Yields Are Near 5%
US Treasury yields have surged as investors reassess the outlook for inflation and interest rates. The 10-year yield reached 4.979%, just below an important 5% level, while the 30-year yield climbed to around 5.38%.
Stronger Dollar Adds to the Pressure
The US dollar index is hovering around 99, supported by higher Treasury yields and safe-haven demand. A stronger dollar can tighten global financial conditions and weigh on risk assets.
Bitcoin ETF Outflows Intensify
Bitcoin ETF recorded $120.2 million in outflows, following a $46.6 million outflow in the previous trading day. That amounts to roughly $166.8 million in withdrawals across two consecutive sessions. This could point towards a drop in buying pressure on crypto.
Leveraged Liquidations Are Amplifying the Sell-Off
Leverage is making the marketâs decline more volatile. Recent crypto-market data showed more than $386 million in positions liquidated, including ~$270 million in long positions.
Whatâs Next for the Crypto Market?
Currently, oil prices, US inflation and FED rates are the most important events to monitor. If these pressures ease, Bitcoin and altcoins could find room to stabilise and recover. However, another surge in oil prices, hotter inflation or continued ETF outflows could extend the ongoing correction.
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