Struggling Bitcoin Leads Crypto Market in Sharp Decline

The cryptocurrency marketplace is down over the last few days, marking a low point for the second half of the year, with Bitcoin (BTC) losing 6% in a week.

For Thursday morning, Bitcoin is up by a marginal 0.37% from the previous day at a price point of $56,678 (BTC/USD). That is a mild price correction after a sharp decrease from the day before. If Bitcoin continues to struggle below the $60K mark for much longer, then it may not achieve a new record high this year at all.

The recent drop to $53,991 for Bitcoin is the lowest it has been since February of this year, and it is an indication that the coin may be headed even lower in the next few weeks.

Ethereum (ETH) has lost about the same amount of value over the last week, as it is down 6.87% in that period. Ethereum is also seeing its lowest value since February 2024, with a price point of $2,396 (ETH/USD) today.

Down the list of crypto tokens, the story is very similar. Solana (SOL) has lost 8% In the last week. Dogecoin (DOGE) is down 3.63%. Tron (TRX) has fallen 6.38%, and so on.

Significant declines have been witnessed in Avalanche, Cardano, XRP, Tonocin, Chainlink, and many more, some losing as much as 10-15% over the last week.

What Is Causing the Bearish Market?

September is not a good month for cryptocurrency, and this year looks to be no exception. There is less trading happening in this month than we normally see throughout the year, and that can be attributed to the tightening of wallets that tends to happen leading up to the holidays. But there is more than historical trends at work here causing the crypto market to suffer.

The market is also in decline because there is anticipation that the upcoming interest rate cuts will devalue some of the crypt market. The Federal Reserve will be cutting interest rates in September, marking the first such cut for the year.

The crypto market lost about $367 billion in a day already in September. This isn’t a fluke of the market but an active problem that will not be resolved quickly and easily. Many analysts are pointing to the bank of Japan’s interest rate hike decision as a major contributing factor. If so, then it may take a while for the market to settle back.