Top Reasons Why Crypto Market Is Down Today

The crypto market today extended its pullback as rising yields, expensive oil, and policy uncertainty weakened demand for risk assets.

The total market capitalization dropped by 0.43% to $2.69 trillion, and the CMC20 index dropped by 0.53% to $164.40. The Fear and Greed Index retained greed at 72, which meant that traders were still optimistic, even as the prices declined.

Liquidations were 165.44M with 114.75M in longs. The open interest increased by 4.37% to $423.07 billion and the derivatives volume increased by 0.52% to $610.36 billion.

Crypto Market Dips as BTC, ETH, and XRP Retreat From Recent Gains

Bitcoin price hovered below $78,800 Tuesday and stayed beneath $80,000 after last week’s gains. Ethereum price dropped 1% to $2,482, while XRP price eased to $1.39.

The majority of the key tokens recorded weekly gains, which indicated consolidation instead of a strong turnaround.

Nevertheless, the support of Bitcoin at $77,000 might be tested one more time in case macroeconomic pressure becomes more strong. Better August payrolls boosted Treasury yields and consolidated anticipations of tight monetary policy.

The traders pegged the probability of a quarter point Federal Reserve increase at about 60%. An increase in rates tends to damage cryptocurrencies by decreasing the demand on speculative assets.