Cryptocurrency prices experienced a downturn on Wednesday, largely influenced by renewed concerns about a potential slowdown in the US economy and the anticipation of significant data releases that could affect the Federal Reserve’s stance on interest rates.

Both Bitcoin (BTC) and Ethereum (ETH) saw declines of nearly 5% before showing signs of partial recovery. The Institute of Supply Management (ISM) revealed that US manufacturing activity remained weak in August, hinting at persistent challenges in the sector. As September began, stocks, gold, and cryptocurrencies all faced setbacks, with investors eagerly awaiting the Federal Reserve’s first interest rate cut.

**US Economic Growth Concerns**

The ISM reported that the US manufacturing Purchasing Managers’ Index (PMI) increased slightly to 47.2 in August from 46.8 in July, which was the lowest reading since November 2023. PMI figures below 50 indicate a contraction, reflecting ongoing struggles in the manufacturing sector, which constitutes 10.3% of the US economy. Consequently, Bitcoin (BTC) dropped to a low of $56,366 before rebounding during the trading session.

“Bearish sentiment in cryptocurrencies has been fueled by the ISM Manufacturing PMI data, which suggests continued economic contraction. The interconnectedness between traditional financial markets and cryptocurrency markets is becoming more evident as traders adjust expectations based on Federal Reserve interest rate decisions. Despite potential volatility, strong trading activity suggests opportunities for recovery and growth.”

Several crucial economic reports are set to be released later this week, including job openings, jobless claims, and the nonfarm payrolls report due on Friday. These reports will provide further clarity on whether the expected Federal Reserve rate cut will be implemented or if a more substantial cut might be necessary.

“Bitcoin has dropped amid mounting selling pressure, mirroring declines in US and Asian equity markets. Investors are closely watching upcoming US economic data for insights into a potential interest rate cut by the Federal Reserve. Bitcoin’s immediate support level is around $56,350. A failure to hold this support could push the price down to $53,500 in the short term.”

**Jim Cramer’s Insight on Crypto Decline**

American television personality Jim Cramer attributed the recent crypto crash, which saw BTC plummet towards $55,000, to sector-specific sell-offs rather than a broader economic decline. Cramer noted that these sell-offs are concentrated in AI, data, and computing sectors.

“It’s not a market-wide sell-off; it’s specific to sectors related to AI/data center/computing as well as housing and oil and companies connected to infrastructure.”

Cramer’s comments followed Nvidia’s nearly 10% stock drop amid reports of an intensified antitrust investigation against the chipmaker. This event caused significant impacts on AI-related tokens. The market is now awaiting the August nonfarm payrolls report due on Friday, with analysts expecting higher figures than the previous 114,000. Should the data surpass expectations, it would signal a robust job market and support anticipated interest rate cuts at the forthcoming FOMC meeting.

**Bitcoin (BTC) Struggles Amid Weak Recovery**

Weakness in US markets on September 3 dragged down crypto markets, with selling pressure continuing on September 4. However, lower price levels attracted buyers in large numbers. Trading firm QCP Capital noted that BTC and ETH might enter a volatile phase. Analysts predict that upcoming rate cuts could benefit risk assets. Nevertheless, Bitfinex analysts suggest that BTC could drop by up to 20% post-rate cuts, potentially bottoming between $40,000 and $50,000.

The uncertainty and volatility surrounding BTC have also pressured altcoins, causing significant recent declines. The overall crypto market cap dipped below $2 trillion before recovering slightly by 0.76%.

**Spot Bitcoin and Ethereum ETFs Face Outflows**

Sentiment around spot Bitcoin ETFs has shifted dramatically over the past weeks. Data shows six consecutive days of outflows, indicating investor concerns about the local economy’s impact on spot Bitcoin ETFs. Although investors made significant inflows on August 23 and 26, sentiment quickly reversed with consistent outflows from August 27 to 30. Following the September 2 national holiday, negative sentiment persisted with nearly $300 million withdrawn from major ETFs.

Similarly, Ethereum ETFs have seen decreased demand with substantial outflows since early September. Investors withdrew $47.4 million on September 3 and $37.5 million on September 4.

**Bitcoin (BTC) Price Analysis**

Bitcoin (BTC) is struggling to stay above $57,000 as sellers continue to exert influence, aiming to drive the price towards $55,000. BTC has faced challenges since falling below its moving averages and entered September with bearish momentum. Sellers have been pushing BTC below crucial support levels with heightened volatility observed since early September. BTC has been trading within a range of $55,000 to $60,000.

Over the weekend, BTC remained in negative territory, dropping to $57,399 by Sunday after a 2.62% decrease. Monday saw a recovery as prices rallied by 3.08%, moving back above $59,000 to settle at $59,169. However, despite strong demand at lower levels, buyers struggled to sustain momentum at higher levels. Consequently, BTC fell back into the red on Tuesday after failing to break above the 20-day SMA, dropping almost 3% to settle at $57,529. Wednesday saw significant selling pressure as markets tumbled, with BTC hitting a low of $55,658 before buyers regained control and pushed prices back towards $60,000, eventually settling at $58,017 after a 0.85% increase.

The current session shows BTC down by nearly 1.50% as sellers aim to drive it below $57,000. BTC bulls are expected to defend the $55,000 level aggressively; failure to do so could lead BTC to drop between $50,000 and $49,000—a level likely to attract buyers. If this level is breached too, BTC could fall further to $42,000. However, if bulls prevent a drop below $57,000, BTC may push towards the $60,000 level.

**Ethereum (ETH) Price Analysis**

Ethereum (ETH)’s recent price movements reflect buying on dips and selling on rallies within a trading range of $2,300 to $2,600. ETH has struggled over recent months and shows little sign of imminent recovery. After dipping below the 200-day SMA in early August to a low of $2,131, ETH has traded sideways within a broader range of $2,300 to $2,800. Since falling below the 20-day SMA at the end of August, ETH has been confined to an even narrower range.

ETH began September with a 3.46% drop but rebounded nearly 5% on Monday thanks to strong lower-level demand, moving back above $2,500 to settle at $2,539. However, resistance from the 20-day SMA led ETH back down on Tuesday with a 4.49% drop to settle at $2,425. Wednesday saw sellers trying to drive ETH below $2,300 before buyers stepped in again to push prices back above $2,400. ETH closed Wednesday with a 1.07% increase at $2,451. In the current session, sellers regained control with ETH down by 1.54%, trading around $2,413.

The MACD indicator remains bearish and the RSI is below 50, signaling bearish sentiment around ETH. Continued selling pressure could push ETH below $2,300 towards stabilization around $2,100. Alternatively, buyers might attempt a relief rally testing resistance at $2,550.

**Solana (SOL) Price Analysis**

Solana (SOL) climbed above $130 on Wednesday but struggled to maintain momentum beyond $135. SOL has declined nearly 10% over the past week due to difficulty building bullish momentum toward $150. Since failing to capture $160 earlier this month, SOL has been in a downward trend with sellers dragging it below key levels.

SOL started September with a 5.03% drop below $130 but rebounded almost 5% on Monday to settle at $135 thanks to strong lower-level demand. However, buyer momentum dried up quickly leading SOL back into red territory on Tuesday with a 5.47% drop settling at $127. Sellers attempted another push towards $120 on Wednesday but strong demand near its support level allowed buyers to regain control leading SOL up almost 5% settling at $133.

To counter bearish pressure effectively SOL must break above resistance levels at $135 and subsequently $140 indicating weakening bear grip allowing buyers control leading towards recovery momentum otherwise sustained seller influence could keep prices subdued below these key levels.

**Dogecoin (DOGE) Price Analysis**

Despite multiple attempts Dogecoin (DOGE) struggled to reclaim its crucial psychological barrier at$0 .100 facing persistent bearish resistance aiming for sub-$0 .090 levels . DOGE dipped below its 20 – day SMA on August27 , followed by repeated failed attempts reclaiming above threshold compounded selling pressures forcing DOGE under$0 .100 mark by September1 closing day$0 .095 subsequent minor recovery Monday finishing$0 .098.

Tuesday witnessed continued inability breaking upwards settling lower$0 .97 amidst intensified selling efforts Wednesday briefly touching intraday low$0 .092 before rebounding driven strong underlying demand closing session$0 .098 marginally down current session hovering around similar levels reflecting continued struggle establishing directional control sellers potentially targeting sub-$0 .090 while bullish defenses expected maintain critical support breach leading further downside$0 .080 whereas successful defense indicating accumulating demand lower levels potentially signaling recovery attempts higher thresholds pending sustainable bullish momentum confirmation.

**Dogwifhat (WIF) Price Analysis**

Solana-based meme coin Dogwifhat (WIF) rebounded strongly after hitting its support level at$1 .40 Sunday declining over8 % immediately recovering driven intense dip buying activity registering impressive10 .34 % rise settling$1 .54 Monday followed Tuesday’s attempted upward breach 20-day SMA reaching intraday high$1 .63 eventually losing momentum drying demand upper levels enabling sellers regain control driving WIF back under SMA ultimately closing day down3 .09 % finalizing$1 .49.

Wednesday saw sellers testing support levels again rebounding from$1 .40 surging past SMA nearly10 % increase settling$1 .64 ongoing session witnessing renewed seller pressures driving price marginally downward towards$1 .55 reflecting underlying volatility amidst directional contest requiring sustained bullish efforts consolidating above resistance thresholds ensuring sustained positive outlook meanwhile continuous bearish influence maintaining downward trajectory necessitating strategic buying support stabilization efforts ensuring broader recovery prospects materialize effectively amidst volatile market conditions.

**SEI Price Analysis**

SEI attempting reversal following recent rejection$0 .35 August25 subsequently declining below critical moving averages falling lowest$0 .26 Sunday recovering nearly7 % settling$0 .28 Monday attempted breach above SMA Tuesday failing allowing renewed seller dominance pushing SEI downward7 .51 % settling$0 .26 .

Wednesday witnessed intraday low$0 .25 followed modest rebound closing day almost4 % settling$0 .27 current session characterized heightened volatility amidst directional contest buyers attempting move above SMA while sellers aiming drive price sub-$0 .25 reflecting intense market dynamics necessitating strategic positioning amidst fluctuating trends ensuring sustained positive directional outlook requiring overcoming key resistance thresholds maintaining broader recovery prospects effectively addressing underlying bearish pressures amidst evolving market conditions.

**Akash Network (AKT) Price Analysis**

AI-focused cryptocurrencies including Akash Network (AKT) experienced double-digit declines early week following Nvidia’s stock plummet nearly10 % resulting staggering$270 billion loss company’s market capitalization subsequent DOJ probe news leading AKT decline over11 % intraday high$2 .40 losing critical support slipping under SMA towards end August settling$2 .37 beginning September AKT started week positively registering modest4 .38 % rise settling$2 .48 .

However subsequent intensified selling pressures post-Nvidia decline driving AKT almost9 % down Tuesday finalizing$2 .26 reaching lowest point$2 .13 Wednesday amidst persistent bearish sentiments marginal recovery observed buyers attempting move above SMA ongoing session intraday high$2 .43 renewed selling drying demand upper levels maintaining bearish influence keeping prices subdued reflecting underlying market volatility requiring strategic positioning addressing evolving trends ensuring broader recovery prospects amidst fluctuating dynamics effectively navigating uncertain market conditions ensuring sustained positive outlook materializes comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures ensuring broader recovery efforts align effectively amidst evolving market trends ensuring sustainable growth prospects materialize comprehensively addressing underlying bearish pressures