The cryptocurrency market saw a sharp downturn in the past 24 hours, with total market capitalization dropping 3.87% to $3.75 trillion, according to CoinMarketCap data. Bitcoin dropped 3.77% to trade near $108,675. Ethereum also fell nearly 4%, sliding to $4,340. Among the top coins, XRP was one of the hardest hit, tumbling more than 5% to $2.83.
Solana slipped to $205, Dogecoin lost over 4%, and Cardano shed 4.4%, bringing it down to $0.82. This downturn followed Trump’s sudden removal of Fed Governor Lisa Cook on August 28, along with growing uncertainty over the Fed’s September rate decision.
The September Pattern
Traders are now worried that the selloff could be the beginning of a larger correction. History shows that every major four-year crypto cycle has delivered steep September losses. In 2013, Bitcoin dropped 15% in early September. In 2017, it crashed 40% during the same month, pulling altcoins down with it. More recently, in 2021, Bitcoin lost 25% between September 7 and September 21.
With inflation data set to be released later this week, the risk of more downside is high. Analysts warn that a higher-than-expected PCE print could spark two sharp red candles similar to past cycles, possibly pushing Bitcoin down another 10 to 20% and altcoins down 30 to 50%.
Outlook Ahead
If history repeats, September could bring a two-to-three-week correction before markets find their footing again. In past cycles, these shakeouts often created the conditions for strong Q4 rallies. For now, experts are watching the $100,000 support zone for Bitcoin, which could serve as a critical level heading into the final quarter of the year.
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