Major cryptocurrencies experienced a significant downturn following the closure of major US stock indexes, which ended notably lower on Tuesday. This decline was primarily driven by Nvidia (NVDA) and other semiconductor stocks. The start of September has been weaker than anticipated, especially after a strong finish to August. Consequently, the crypto markets mirrored this decline, with leading cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Polkadot (DOT) among others, witnessing substantial losses.

Bitcoin (BTC) experienced a near 5% drop within 24 hours, while Ethereum (ETH) saw almost a 6% decline, falling below the critical $2,400 level. Solana (SOL) also faced a similar fate, dropping by nearly 6% to fall below $130. Polkadot (DOT) is teetering just above the $4 mark.

Bitcoin (BTC) Loses Traction

Bitcoin (BTC) fell to a low of $55,676 before making a slight recovery above $56,000 as the broader crypto market plummeted in response to the downturn in traditional stock markets. The world’s largest cryptocurrency has lost significant ground, dropping almost 5% in the past day and struggling to regain the $60,000 threshold. Analysts have attributed this decline to broader macroeconomic concerns and other influencing factors.

One trader pointed out that recession fears in the US are partly responsible for BTC’s slump. However, with market trends stabilizing and focus shifting towards monetary policy and the US Dollar’s performance, BTC’s future gains hinge on expectations of a more lenient Federal Reserve policy, potentially including interest rate cuts. Traders anticipate that the US might resort to expansionary measures to stimulate economic growth.

“There is a new bullish narrative for Bitcoin driven by a potentially looser Federal Reserve policy and global macro trends. Following a bearish phase in early August, optimism for Bitcoin has been boosted by expectations that the Fed will ease monetary policy. This sentiment shift marks a ‘tactical bottom’ for Bitcoin, possibly signaling the beginning of a new bull run. Currently, BTC is less influenced by US recession concerns and more by monetary policy and the US dollar’s performance.”

The upcoming US jobs report on September 6 could also play a crucial role. Economists at Morgan Stanley predict that the US added 185,000 new jobs in August, a number sufficient to support a 0.25% interest rate cut. However, skepticism among traditional investors remains high, exemplified by Nvidia’s 6% drop following an earnings report that exceeded market expectations.

Spot Bitcoin ETF Outflows And Declining Miner Profitability

Another reason for BTC’s lagging price is the significant outflows from spot Bitcoin ETFs. These instruments have seen considerable negative press due to their failure to attract inflows and witnessing substantial outflows. Between August 27 and August 30, spot Bitcoin ETFs registered $480 million in net outflows, erasing the $455 million in inflows from the previous two days. While this may seem routine, it has generated doubts among traders about BTC’s future price trajectory.

Bitcoin investors are also worried about miner profitability, which is nearing all-time lows and could prompt a selloff. Miners currently hold over 1.8 million BTC, a figure unchanged over recent months, causing concern among investors. Additionally, Bitcoin’s hashrate index has dropped from $48 per PH to $42 per PH per day, adding to these worries.

Breakout Or Breakdown?

Is BTC on the verge of a breakout or another dip? Analysts have identified three major events that could propel BTC higher and potentially break its recent downward trend. According to Mena Theodorou, co-founder of Coinstash, BTC’s next significant price movement depends on how the market reacts to upcoming political and regulatory shifts in the US and forthcoming macroeconomic data.

“Whether it’s a breakout or a dip will likely depend on the next major piece of news or market shift […] for now, the market seems to be in a bit of a ‘wait and see’ mode.”

Josh Gilbert, an eToro market analyst, highlighted the upcoming Federal Open Market Committee meeting on September 18 as a potential catalyst for BTC. Many analysts expect Federal Reserve Chair Jerome Powell to cut interest rates by up to 0.525%, which could significantly boost risk assets like Bitcoin.

“The bottom line is that a rate cut is coming, but the focus is now on the size of that cut. US jobs data this week will be a key driver of expectation and could influence crypto assets.”

Ting Wang, CEO of Coinstash, also emphasized the importance of upcoming US employment data set to be released on Friday.

“The July unemployment rate came in higher than expected, raising concerns about a possible recession. The unemployment rate is famously known as a double-edged sword. On one hand, a higher-than-expected rate could signal a greater chance of recession, which isn’t great news. On the other hand, it could actually be positive for the market because it might give the Fed more reason to cut interest rates.”

Bitcoin (BTC) Price Analysis

Bitcoin (BTC) took a notable tumble early in the session, hitting a low of $55,663 before buyers managed to prop it back above $56,000. However, with markets in decline, BTC faces considerable selling pressure and may struggle to reclaim previous support levels without a significant trigger pushing its price higher. As observed in the price chart, BTC has predominantly been in the red since the weekend. Sellers attempted to drag its price below $58,000 on Friday as it fell to an intraday low of $57,733. However, buyers countered this selling pressure and pushed BTC back above $59,000.

Source: TradingView

BTC experienced minor declines on Saturday before falling almost 3% on Sunday, closing the weekend at $57,399. BTC found support around $57,000 and rebounded on Monday with an increase of just over 3%, settling at $59,169. On Tuesday, buyers made an attempt to move above the 20-day SMA and the $60,000 level but were met with strong selling pressure. Consequently, sellers took over and drove BTC down by 2.77% to $57,529. With global markets facing a trillion-dollar wipeout, BTC also registered a significant drop during the ongoing session as it slipped below $57,000 to hit a low of $55,663. The cryptocurrency is currently trading around $56,500, down almost 2%.

Bears are likely to continue exerting pressure on the market and aim to drive BTC below $55,000—the next support level. Meanwhile, buyers will try to gather momentum to reclaim $57,000 before any further moves. For sentiment to flip positively for BTC, it needs to break above $60,000 and subsequently $65,000 levels. This would indicate that bears are losing their grip while bulls gain traction. If BTC surpasses these levels, it will face resistance between $70,000 and $74,000.

Ethereum (ETH) Price Analysis

Ethereum (ETH) has dipped below the crucial $2,400 mark and may be poised for further downturns if its price closes below $2,300. ETH has struggled throughout August with bearish sentiment dominating its performance. This trend has continued into September as ETH begins the month on a bearish note with negative sentiment potentially intensifying if current price action persists. ETH had been trading between $2,400 and $2,600 but struggled to break above its 20-day SMA.

Source: TradingView

The world’s second-largest cryptocurrency ended last weekend in negative territory with a 3.44% drop to settle at $2,428. Despite holding support at $2,400, ETH rebounded on Monday with a rise of 4.55%, pushing back above $2,500 to settle at $2,529. However, buyer momentum waned as demand dried up near $2,600 allowing sellers to take over on Tuesday; ETH subsequently dropped by 4.49%, falling below $2500 and settling at $2,425. Sellers continued dominating during the ongoing session driving ETH down to a low of $2,310 before buyers pushed back bringing it up to $2,389 as it attempts to reclaim the crucial $2,400 level.

Should ETH close below $2,300 it could decline further towards $2,200 or even $2,100 making it imperative for buyers to reclaim $2,400 promptly. The sentiment around ETH remains quite bearish with both MACD indicating bearish tendencies and RSI trading below neutral 50 levels.

Solana (SOL) Price Analysis

Solana (SOL) is striving to reclaim its $130 price level after dropping below it on Tuesday due to continued selling pressure on its price. SOL’s recent bearish trend has resulted in over 13% losses during the past week alone. As evidenced in its price chart SOL has been struggling against downward trends since facing rejection at $160; dipping below moving averages towards August-end indicated increasing bearish sentiment.

Source: TradingView

By late August SOL had dipped below $140 settling at $135; those expecting an optimistic start for September were disappointed as SOL continued declining just over 5%, starting September below $130 settling at $128 instead. Despite bearish undertones SOL began this week positively rebounding from its low registering an increase of 4.98%, pushing back above $130 settling again at around$135 level; yet sellers once more prevented further increases causing SOL dip by another 5.47% slipping back under$130 settling instead around$127 levels currently trading upwards almost 3%, reaching approximately$131 today.

SOL has strong demand zones around$120 which buyers are expected vigorously defend against further downturns; flipping sentiment positively requires SOL closing above$130 enabling potential pushes towards$140 beyond which successful breaches could drive prices closer towards$150 levels too.

Fantom (FTM) Price Analysis

Fantom (FTM) ended August bearing bearish sentiments slipping below its 50-day SMA unable staying above$0 .50 levels despite attempts recovery following dips reaching$0 .42 during late August buyers lacked momentum preventing significant movements resulting closing August around same$0 .42 mark itself; starting month faced intensified selling pressures dropping almost another5% on Sunday slipping under$0 .40 levels briefly rebounding Monday rising nearly6%, returning about same$0 .42 levels again overall however high sell pressures resisted upward movements leading nearly9% drops Tuesday too continuing current session marginally downwards sellers looking extend influences push prices lower yet too,

Source: TradingView

FTM’s RSI just under50 indicating bearish inclinations however sentiments could shift positively given Fantom gearing launch Sonic testnet next week representing their most ambitious upgrade promising significant improvements speed scalability alongside numerous new features thereby potentially altering market perceptions positively too,

Bittensor (TAO) Price Analysis

Bittensor(TAO) witnessed severe declines dropping almost8% past24 hours staggering18% over past week especially among top AI tokens facing crippling declines coinciding sharply Nvidia’s notable10% plummet dated September4 along largest single-day market cap drop US company history estimated around staggering270 billion dollars followed DOJ subpoenas further contributing continuous stock declines post-market hours too,

Source: TradingView

Following these news-driven impacts tokens like AKT FET RNDR TAO faced double-digit declines recovering partial losses subsequently itself TAO struggling previously started month almost6% drops dragging prices downwards approximately264 dollars rebounding Monday rising further6% settling instead280 dollars tanked Tuesday slipping under250 settling248 levels overall dragging lows around240 during current sessions recovering partial losses currently trading about255 today upwards near3% itself,

Celestia (TIA) Price Analysis

Celestia(TIA) struggles maintaining support levels amidst lacking buying activities stalling bullish momentums overall observing downward trends failing breach6 .05 dated August24 losing several key supports slipping under5 trading around4 .49 by month-end observing roughly20% drops last month; starting new month bearish persisting sentiments seeing TIA dropping nearly6% Sunday settling instead4 .24 levels rebounding Monday rising further5 .71% settling back4 .47 buyers unable sustain pushing above4 .50 sellers retook controls Tuesday causing drops exceeding9%, slipping further lows4 .06 observing supports holding subsequently pushing prices upwards lows3 .88 instead currently around4 .19 marginal upwards3% itself,

TIA holds strong supports around4 preventing further declines needing reclaiming crucial4 .50 levels reversing overall sentiments pushing towards5 encountering resistances downward-sloping20-day SMA acting resistance overall ensuring sustained momentum towards overall positive sentiments eventually too,

In summary: Major cryptocurrencies including Bitcoin Ethereum Solana Polkadot others experienced significant downturns reflecting broader market declines particularly driven Nvidia semiconductor stocks overall reflecting broader macroeconomic concerns influencing investor sentiments across varied dimensions too,