What Happened in the Crypto Market Today?

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The total crypto market cap slipped 2 percent in the past 24 hours to hover around $2.18 trillion on Friday, August 30, during the mid-European session. Although Bitcoin’s (BTC) price has established a robust support range between $59k and $58k in recent times, several indicators point to a further bearish outlook in the coming weeks. 

Furthermore, Bitcoin price has been trapped in a falling trend correction since hitting its all-time high (ATH) of around $73.7k in mid-March. 

Why Crypto Market is Down Today?

Rising Fear of September Axing

Despite the general decline in Bitcoin and Ethereum supply on all crypto exchanges, the macro price action is still bearish in the mid-term. Unless Bitcoin price consistently closes above $65k in the near term, the crypto industry will continue in a bearish outlook in September. 

Furthermore, the correlation between Bitcoin and the altcoin industry remains positively high.

Bitcoin and Ethereum’s fear and greed index has consistently remained below 30 percent in the past few days, suggesting heightened traders’ fear of further capitulation. 

Historical data suggests that September is not the best month for crypto assets, especially after the Bitcoin halving event. As a result, more traders have continued to exit the market in preparation for re-entry in the fourth quarter.

Despite the anticipated Fed’s interest rate cuts in September, amid the upcoming U.S. elections, the crypto industry has suffered the same fate as major stock indexes in a midterm bearish outlook.

Low Demand for Crypto Assets from Both Retail and Institutional Investors 

I have one question for retail investors: how much longer are you going to wait? pic.twitter.com/YP8n29F8Ao

— Axel Adler Jr (@AxelAdlerJr) August 29, 2024

The pace of net capital inflow into Bitcoin has significantly slowed down in the recent past, thus indicating a balance between investors who are making profits and those who are incurring losses. Worth noting that the overall crypto funding rate has drastically reduced across all crypto exchanges, signaling low demand for digital assets.

Interestingly, both US-based spot Bitcoin and Ethereum ETFs have registered next cash outflows in the past few days. On Thursday, the US spot BTC ETFs registered a net cash outflow of about $71.7 million. On the other hand, the US spot Ether ETFs registered a net cash outflow of $1.77 million.