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Why is the crypto market down today?

Why is the crypto market down today?

Although the beginning of last week triggered a strong recovery for the majority of assets in the cryptocurrency market, this week’s start is not as fortunate for most of them, including representative cryptocurrencies Bitcoin (BTC) and Ethereum (ETH).

Specifically, the crypto sector’s total market capitalization is down 1.31% in the last 24 hours, having lost over $15.4 billion – from $1.06 trillion one day ago to the current $1.04 trillion recorded at the time of publication, according to the latest data retrieved by Finbold on September 25.

Total crypto market cap 24-hour chart. Source: CoinMarketCap

Effect of Fed Chair’s comments

As it happens, the negative movements arrive at the heels of last week’s meeting of the United States Federal Reserve, during which Chairman Jerome Powell suggested that the central bank would consider additional hikes should the economy continue to outperform expectations.

Shortly after, Bitcoin started to decline and moved into a sideways trading pattern, and is currently changing hands at the price of $26,042, indicating a decline of 2.1% in the last 24 hours and 4.01% across the previous seven days while still holding onto the 0.08% gain on its monthly chart.

Bitcoin 7-day price chart. Source: Finbold

Meanwhile, its runner-up, Ethereum, mimicked the movements of the flagship decentralized finance (DeFi) asset. Indeed, the second-largest digital asset by market cap was at press time trading at $1,566.25, down 1.74% on the day, 5.05% in the last week, and 5.05% across the past month.

Ethereum 7-day price chart. Source: Finbold

That said, examples of positive events that could exert positive pressure on the sector include increased adoption, such as the partnership between Germany’s Deutsche Bank and Swiss startup Taurus to introduce crypto custody services, as well as Japanese investment giant Nomura introducing a Bitcoin fund for institutional investors.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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