Recent Crypto asset Trading market News for September 25: What’s Causing the Crypto Decline Today? Bitcoin Value Falls Below 112K USD, Ethereum Drops Under 4K
What’s causing the drop in crypto today? Why has the BTC USD rate fallen below 112K, and why has Ethereum slipped under 4K?
The full trading market experienced a loss exceeding $162 billion in value overnight, bringing the total market capitalization down to $3.81 trillion. Liquidations have skyrocketed to over $400 million in just one night, with the highest single rekt reported at $29 million in 
Ethereum ▼-0.87% long position.
(source – Coinglass Liquidation Data)
The present circumstances may appear to be a classical flush, with over-leveraged traders being eliminated during a textbook shakeout. This could be the conclusion, or merely another episode in crypto’s unpredictable cycles. However, as we warned yesterday, the ongoing downturn is not finished.
DISCOVER: 9+ Best Memecoin to Buy in 2025
BTC USD Rate Drops: What is Causing the Crypto market Decline Today with ETF Outflows and Fed Announcements?
A primary factor contributing to today’s crypto decline is the abrupt change in ETF flows. Multiple on-chain analysts report that outflows from Bitcoin ▲0.88% and Ethereum ▼-0.87% ETFs reached about $244 million, effectively bringing a multi-week inflow streak to a halt. This comes alongside the Federal Reserve’s recent 25 basis point rate cut, lowering rates to 4.00%.
(source – ETF Flows, Coinglass)
Despite many anticipating release, Powell’s remarks regarding inflation risks have kept institutions cautious. The stronger dollar is currently impacting risk sentiment, causing the BTC USD rate to drop to $111,758 and Ethereum to $4,020 at the time this article was published.
From a technical perspective, this situation resembles the post-rate cut dip from mid-last year, which saw Bitcoin decline by 11% over the course of a week. The support at 115K failed to hold, with Ethereum losing the 4.2K threshold keeping altcoins under strain. Nevertheless, this is still classified as a correction.
Funding rates, particularly for Ethereum, have turned negative, indicating a significant rise in short interest. CoinGlass also reveals a reduction in open interest, which often signals impending short squeezes when price levels stabilize.
(source – Funding Rate, coinalyze)
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What’s causing today’s crypto decline, even while certain altcoins display some strength? Altcoins like Solana have dropped by 11%, yet BNB remains above 1K, showing a form of selective resilience. According to DeFiLlama, the Decentralized finance total value locked (TVL) has only seen a decrease of just under 1%, which is not as disastrous as some may suggest.
(source – CoinGecko)
Sentiment is deeply entrenched in fear, yet history indicates that fear tends to precede recoveries.
Fear & Greed Index: 03/04/2022#bitcoin #crypto pic.twitter.com/S1wWnz3Bt2
— Crypto Fear and Greed Index (@cFearGreedIndex) March 4, 2022
Should Bitcoin regain 114K and ETH manage to stabilize, this correction might serve as a foundation for the next price breakout. Until then, the retention of weakness is likely to continue. This trading market favors patient traders, and as is often the case, those who remain bold tend to succeed when others are in panic.
DISCOVER: 16+ New and Upcoming Binance Listings in 2025
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Is This The End of Memecoin Sector?
The crypto market has been experiencing significant market fluctuation, with Bitcoin’s drop to $112K erasing billions from non-BTC crypto valuations. Memecoins faced particular pressure; PEPE declined 16%, TRUMP coin fell 18%, and SHIB struggled to maintain its crucial price floor level. Nevertheless, historical trends indicate that meme tokens often rebound strongly following September’s dips during altcoin season.
Here’s an analysis of these three prominent memecoins alongside a new contender that could potentially become the next big crypto.
Read the full article here.
The post Latest Crypto market Update Today, September 25: Why is Crypto Down Today? Bitcoin Price Below 112K USD, ETH Dips Under 4K appeared first on 99Bitcoins.
