The crypto market is down today, Sept. 15, with Bitcoin and most altcoins erasing some of the gains they made during the weekend.
Bitcoin (BTC) price dropped to $115,000, while Ethereum (ETH), Solana (SOL), and Cardano (ADA) fell by over 3%. The market capitalization of all coins fell by 1.28% to $3.2 trillion.
One potential reason why the crypto market dropped is that liquidations jumped by over 43% to $424 million, while open interest fell to $22 million.
Ethereum was the most liquidated token, with positions worth more than $106 million closed in the last 24 hours. Bitcoin liquidations jumped to over $44 million, while Solana and Dogecoin each saw about $31 million.
These liquidations happened as exchanges closed long positions as prices dropped. Historically, liquidation pressure puts prices under strain as these long positions are unwound.
The rising liquidations coincided with falling open interest, which dropped to $221 billion from last week’s high of $226 billion.
Another potential reason the crypto market is going down is that investors are booking profits after the recent jump.
Before the current pullback, Ethereum’s price was hovering near its all-time high. Other top cryptocurrencies like Pepe, Cardano, and Ondo were trading at their highest levels in weeks.
It is common for cryptocurrencies to drop after hitting multi-week highs. This pullback is often seen when the Altcoin Season Index jumps to 70 and above.
The crypto market is also pulling back as traders position their trades for the upcoming Federal Reserve interest rate decision.
Polymarket, Kalshi, and the CME FedWatch Tool show that odds of a cut have jumped to more than 90%. These odds rose after the U.S. published weak nonfarm payrolls earlier this month.
While interest rate cuts are generally bullish for cryptocurrencies, investors are likely concerned this will be a sell-the-news event. For one, the Fed will likely deliver a hawkish cut since inflation remains above the 2.0% target.
The crypto market is also edging lower as investors watch ongoing trade talks between the U.S. and China. Earlier today, a Chinese regulator ruled that Nvidia violated antitrust rules, pushing its stock lower in the pre-market session.
