Bitcoin and others see volatility after the Fed cut
The Daily Brief is brought to you in partnership with BCB Group, Wincent, Vault12 and World Mobile.
📉 Market choppiness - Bitcoin falls 2.6%, ETH, XRP, and SOL drop 5%+.
⚖️ High leverage + low liquidity - cascading sell-offs and volatility.
😨 Fear and Greed Index - back in Fear.
Crypto markets took a sharp dive this morning, with Bitcoin down 2.6% and trading around $112,600. Others like Ethereum (ETH), XRP (XRP), and Solana (SOL) each shed more than 5%.
10X Research said in a note that the volatility could be due to a mix of high leverage and low liquidity. High leverage means traders are borrowing to amplify their bets on price moves, while low liquidity means there aren’t enough buyers and sellers currently to absorb big trades smoothly. Together, even a small price move can trigger large losses, force liquidations, and create a cascade of selling that drives prices down further.
Given this backdrop, the Bitcoin Fear and Greed Index has slipped back into Fear.
Despite the choppiness, crypto asset manager Bitwise noted that long-term fundamentals remain strong, saying Bitcoin “faces short-term headwinds but builds long-term tailwinds.” The Fed’s recent rate cut, and the likelihood of more cuts before year-end, could be among these.
In the markets…
🌍 Total crypto market cap ↘️
The global crypto market cap is approximately $3.89 trillion, down 3.98% from this time yesterday.
🟠 Bitcoin (BTC) ↘️
Price: $112645 down 2.64% in the last 24 h.
Daily high: $115,796
Daily low: $112,549
📈 S&P 500 ↗️
SPY is currently up about 0.49% since yesterday’s close.
📈 Nasdaq 100 ↗️
The Nasdaq 100 is up about 0.7% overnight.
😐 Fear & Greed Index
The Crypto Fear & Greed Index stands at 47/100, in Neutral.
*Data is correct as at 22 September, 09:09 GMT.
Cautionary Notes
It's definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.
