September 4th marked a black Tuesday for the US market and the crypto market. The US market fell with the S&P 500 dropping by 2.12% and the Bitcoin price dropped by 2.77% yesterday.
The bearish continuation in the Bitcoin price today results in an extended 1.24 percent drop as BTC trades at $56,778. The Nasdaq, the tech-based index in the US market, took an even harder hit of 3.15%. Further, the three largest companies in the world, Microsoft, Apple, and Nvidia, fell between 1% to 10%.
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Total Crypto Market Cap Under $2T
Amid the crash, the total market cap of the crypto industry drops below $2T and a death cross between the 50-day and 200-day EMA occurs.
Source: Tradingview
In a bearish turn of events, the altcoins market cap lost the $850B support and is standing at $832B. As the bear market continues, the next reversal spot for the crypto market is near Bitcoin’s $55,000 and $50,000 support levels.
Liquidations To Hit $200M Amid Bear Market
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Adding fuel to the bearish trend, the recent crash in the global markets prolonged the bearish trend and deteriorated the sentiment further. The Japanese market opened at a negative step as the yen carry trade saga continues to unfold.
During the crypto crash, the market is close to hitting a $200 million wipeout in bullish positions. This happens with a panic selling movement starting with the increased FUD in the market.
The Bitcoin ETF market adds to the FUD, as $288 million of net outflow was recorded on September 3rd. This has been the biggest outflow in the past four months, with Fidelity FBTC losing $162M, Grayscale’s GBTC losing $50M, Bitwise BITB recording a $25M outflow, and ARK’s Invest ARKB losing $33.6M.
Meanwhile, BlackRock’s IBIT and WTree’s BTCW registered a net zero outflow.
AI Tokens Under Pressure
The massive dump in NASDAQ comes after the recent subpoena filed by the Department of Justice against NVIDIA. This massive move, amid the economic slowdown, puts AI-related crypto projects under pressure.
The total market cap for the AI projects dropped from $32B on 25th August to $25 billion today. Over the past 24 hours, the top AI tokens, for example, NEAR Protocol, Internet Computer, Artificial Superintelligence Alliance, Render, and BitTensor, registered a massive drop from 2% to 6.40%.
The Bullish Cavalry: US Fed Rate Cuts
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Jerome Powell, the US Fed Chair, continues to tease the investors’ community with a proposed plan to cut the interest rate in September 2024. With a potential rate cut, the market could turn bullish, with Bitcoin potentially reaching a new all-time high above $73,000.
Also Read: CleanSpark Releases August 2024 Bitcoin Mining Update
