Bear Trend Grips Crypto Market

The bears have a stranglehold on the cryptocurrency market and are not letting go. For several days now, the market has been falling sharply, with the overall market cap dropping by $52 billion.

Bitcoin (BTC) has dropped by 1.20% over the last day and is down to $55,993 (BTC/USD). Across the board, the crypto market is declining, seeing day after day of consecutive price decreases.

Several key tokens are declining much faster than the average, like Toncoin (TON), which fell 11% over the last week. Bonk (BONK) fell 11.58%, and Chainlink (LINK) is down 10.27%.

What Is Causing Crypto Decline?

The bearish trend is concerning to investors, and it indicates that September may once again be a tough month for the market. We are seeing some of the lowest numbers for the year for Bitcoin, with the leading token struggling to get back up to $60K.

The upcoming Nonfarm Payrolls report could help the crypto market. The report is expected to show that 160,000 jobs were added in August, which would be a significant increase from July’s 114,000. Unemployment is expected to decrease as well, down to 4.2% when this new report is released.

The reasons for crypto decline, though, are varied. Part of the problem lies with uncertainty about the US election. Although Donald Trump pledges to protect cryptocurrency and make sure that it can be traded unimpeded if he is elected, the Democratic Party has not taken such a strong and vocal stance in support of cryptocurrency. In fact, their administration has been very conservative and restrictive when it comes to crypto over the last four years.

Bitcoin and other major tokens are very volatile right now, but Bitcoin may be strong enough to handle a further decline without dropping as low as $50K. However, a further drop could hurt its support and make it even harder for the coin to recover back above $60,000. There is some fear that the NFP report will cause a bearish shift in the market despite the positive expectations. A strong report from the US jobs market could cause a selloff among crypto investors.