The cryptocurrency market experienced a sharp decline on September 26, 2025, with the total market capitalization falling $150 billion to $3.70 trillion. Bitcoin dropped to $108,600, marking a fall from $113,200 in the previous 24 hours.
The selloff was triggered by over $1 billion in liquidations across digital assets. Ethereum traded around $3,900-3,950, falling below the psychological $4,000 level that many traders watched as key support.
Federal Reserve Chair Jerome Powell’s recent warnings about inflation risks and slowing labor market conditions contributed to the bearish sentiment. These comments raised concerns that persistent inflation could prevent potential rate cuts from the Federal Reserve.
Growing anxiety about a potential US government shutdown has created additional uncertainty in financial markets. This risk-off sentiment pushed investors away from volatile assets like cryptocurrencies and into safer investments.
Institutional investors have been pulling capital from crypto markets, leading to large liquidations across major exchanges. Options contracts worth billions of dollars are nearing expiry this week, adding to the selling pressure.
The crypto Fear & Greed Index remained in “Fear” territory, reflecting cautious market sentiment. This metric often amplifies price swings as traders reduce their risk exposure during uncertain periods.
Solana experienced a 21% decline over the week as part of the broader risk-off rotation. Dogecoin fell to $0.23, down 3-5% as speculative selling increased across meme coins.
The total crypto market cap is currently holding above the $3.67 trillion support level. If this level fails, analysts expect a potential slide toward $3.58 trillion, which could expose the market to further declines.
Bitcoin’s fall below $110,000 points toward the $108,000 support zone as the next key level to watch. For recovery, Bitcoin would need to reclaim $110,000 as support to test the $112,500 resistance level.
Ethereum’s weak futures activity and failed support below $4,000 triggered additional downside moves. This technical breakdown has led to more cautious positioning among institutional traders.
The current price action reflects short-term macroeconomic concerns combined with technical breakdowns across major cryptocurrencies. Trading volumes increased as automated selling programs activated following the breach of key support levels.
Market participants are now watching economic data releases closely, as concerns about interest rates and inflation continue to impact both equity and crypto markets. The combination of institutional outflows and retail liquidations has created the current selling environment.
The post Why is the Crypto Market Down Today? appeared first on CoinCentral.
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