The Cryptocurrency market saw a sharp decline in the last 24 hours, in which the total market capitalization fell by 3.87% to $ 3.75 trillion, according to data from Coinmarketcap. Bitcoin fell 3.77% to trade near $ 108,675. Ethereum also fell almost 4%and slid to $ 4,340. Under the top coins, XRP was one of the most difficult affected, which tumbled more than 5% to $ 2.83.
Solana fell to $ 205, Dogecoin lost more than 4%and Cardano declined 4.4%, which reduced it to $ 0.82. This decline followed on 28 August the sudden removal of the Fed Gouverneur Lisa Cook, together with the growing uncertainty about the FED rate decision in September.
The September pattern
Traders are now afraid that the sale could be the start of a larger correction. History shows that every large four-year-old crypto cycle has delivered Steep losses in September. In 2013, Bitcoin fell by 15%at the beginning of September. In 2017 it crashed 40% in the same month and Altcoins pulled it down. More recently, in 2021, Bitcoin lost 25% between September 7 and September 21.
With inflation data set that will be released later this week, the risk of more disadvantage is high. Analysts warn that a higher than expected PCE print could cause two sharp red candles that are comparable to cycles from the past, so that Bitcoin pushes another 10 to 20% and altcoins and 30 to 50% down.
Prospect
If history repeats itself, September could make a correction of two to three weeks before markets find their foot again. In earlier cycles, these shake -outs often created the conditions for strong Q4 rallies. For the time being, experts are looking at the $ 100,000 support zone for Bitcoin, which could serve as a critical level on their way to the last quarter of the year.