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<p>The post <a href="https://coinpedia.org/news/why-the-crypto-market-is-down-today-is-this-the-beginning-of-the-end-for-altcoins/" rel="noopener noreferrer nofollow">Why the Crypto Market is Down Today? Is This the Beginning of the End for Altcoins?</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>The crypto market has faced a massive sell-off, largely driven by global factors, macroeconomic events, and technical weaknesses, causing the market cap to drop below $2.05 trillion. Bitcoin and Ethereum each fell over 4%, with major altcoins like BNB, SOL, XRP, TON, and ADA declining by 4-7%. AI and meme coins were hit hardest.</p>
<p>Despite Bitcoin’s dip to $49,000, it has remained rangebound between $50,000 and $60,000, reflecting ongoing market uncertainty. The key question is whether BTC and altcoins can withstand the challenges below.</p>
<p>Let’s find out!</p>
<h2 class="wp-block-heading" id="h-key-factors-behind-the-market-selloff"><strong>Key Factors Behind the Market Selloff</strong></h2>
<h3 class="wp-block-heading" id="h-bank-of-japan-holds-steady"><strong>Bank of Japan Holds Steady</strong></h3>
<p>Due to market turbulence, the BOJ has signaled that it will not hike interest rates this year. Another rate hike may occur next March, though. This uncertainty has caused panic attacks, notably in Yen carry trades. These deals have historically caused global financial market instability and may affect the crypto market. As traders expect more turbulence, BOJ speculation has increased Fear, Doubt, and Uncertainty (FUD).</p>
<h3 class="wp-block-heading" id="h-geopolitical-tensions-and-economic-uncertainty"><strong>Geopolitical Tensions and Economic Uncertainty</strong></h3>
<p>The ongoing Russia-Ukraine conflict continues to fuel market instability, especially with recent tensions regarding a fire at Europe’s largest nuclear power plant. Plus, <a href="https://www.timesofisrael.com/in-reversal-israel-said-to-now-believe-iran-plans-to-attack-in-next-few-days/" rel="noopener noreferrer nofollow">reports </a>indicate that Israel is preparing for a potential major Iranian attack, adding another layer of geopolitical risk. In India, the SEBI Chairperson faced allegations of offshore entities connected to the Adani scandal, further shaking investor confidence.&nbsp;</p>
<p>Meanwhile, in the US, fears of a recession persist despite some economists and business leaders <a href="https://www.bloomberg.com/news/videos/2024-08-08/us-may-be-in-recession-economist-david-rosenberg-says" rel="noopener noreferrer nofollow">expressing </a>hope about the economy’s resilience. This economic uncertainty has kept the crypto market on top, with investors fearing potential downturns.</p>
<h3 class="wp-block-heading" id="h-impact-of-us-inflation-data"><strong>Impact of US Inflation Data</strong></h3>
<p>Moreover, macroeconomic indicators in the US economy will be closely watched this week. PPI, CPI, Initial Jobless Claims, and Retail Sales statistics for Tuesday, Wednesday, and Thursday will be eagerly followed. Bloomberg’s survey found that the Federal Reserve would drop interest rates by 25 or 50 basis points in September based on this news. These data signals could stabilize or destabilize crypto markets if inflation rises or falls.</p>
<h2 class="wp-block-heading" id="h-crypto-market-to-crash-more"><strong>Crypto Market to Crash More </strong></h2>
<p>Not to forget Bitcoin which is facing significant liquidity challenges which might cause short-term fluctuations in the market. The BTC Liquidity/OrderBook Heatmap also <a href="https://www.coinglass.com/LiquidityHeatmap" rel="noopener noreferrer nofollow">indicates </a>potential further drops, possibly down to $56,800. The market is particularly concerned about a possible “death cross,” a technical pattern that could trigger more selloffs.&nbsp;</p>
<p>Moreover, there is a risk of massive liquidations, with around $2 billion in BTC longs potentially being liquidated if the price falls below $58,600. In the past 24 hours alone, more than 61,000 traders have been liquidated, with total liquidation exceeding $166 million across top cryptocurrencies. A significant single liquidation occurred on OKX, where an ETH trade worth $2.17 million was closed.</p>
<p><strong>The above market scenarios have sent ripples through the market. Will this impact your investment strategy?</strong></p>

Why the Crypto Market is Down Today? Is This the Beginning of the End for Altcoins?

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