The cryptocurrency market saw a sharp dip in the last 24 hours, with the global crypto market cap falling by over 2.4% to $3.78 trillion. Top cryptocurrencies like Bitcoin and Ethereum were not spared from the downturn. Bitcoin dropped by more than 2% and is currently trading around $115,957, while Ethereum slipped over 3.6% to $3,717.
Altcoins have taken an even harder hit. Solana (SOL) is down by nearly 4.8%, now priced at $171, while Cardano (ADA) and Dogecoin (DOGE) fell by 4.89% and 5.87% respectively. XRP also saw a drop of around 3.7%. The current sideways action across many tokens has pushed the Altcoin Season Index down to 37 out of 100, meaning that Bitcoin continues to dominate market attention.
Why Are Cryptos Falling Today?
This downturn has been largely triggered by macroeconomic uncertainty, particularly after the U.S. Federal Reserve decided to keep interest rates unchanged while issuing a stern warning about slowing economic growth. Markets had briefly rallied after the White House released a crypto policy report pushing for clearer SEC guidelines, but that faded quickly as the Fed’s message began to sink in.
Adding to the pressure, total liquidations across the crypto market reached nearly $631.98 million. When global economic signals turn bearish, capital tends to move out of riskier assets like altcoins first. With crypto no longer operating in a vacuum, market sentiment is being shaped by the same global forces that drive equities and commodities.
FAQs
Why is the crypto market down today?
Crypto markets fell 2.4% due to Fed holding rates, economic warnings, and $632M liquidations. Bitcoin dropped to $115,957 (-2%), Ethereum to $3,717 (-3.6%).
Did the Fed decision impact crypto prices?
Yes – Fed’s unchanged rates + growth warnings triggered selloff. Crypto now reacts to macro trends like stocks, with $631M liquidations.
Is this a normal crypto market correction?
Yes – typical risk-off move after Fed news. Bitcoin (-2%) held better than altcoins (-3-6%), showing relative stability during pullbacks.
When will crypto market recover from this crash?
Recovery likely after macro uncertainty clears – watch for Fed policy shifts (Sept meeting) and ETF inflows. Historically bounces within 2-4 weeks after similar dips.