Check out Why the Crypto Market is Down This Week. 



Nilesh  Hembade

The crypto market's total value fell by 8% between Aug. 15 and Aug 25, hitting a 2-month low at $1.02 trillion. 

This decline led to significant liquidations on futures contracts, reminiscent of the FTX collapse in November 2022. 

Rising interest rates (above 5%) and persistent inflation (above 2%) increased borrowing costs for households and businesses, impacting spending and investment. 

Inflation is projected at 3.6% for 2024, and high wage growth (5.5% YoY) could prompt the Federal Reserve to raise interest rates, favoring traditional investments over cryptocurrencies. 

The Federal Reserve's efforts for a "soft landing" indicate less likelihood of a severe recession, momentarily weakening Bitcoin's appeal as a hedge. 

Hopes for a Bitcoin ETF approval were dashed as the SEC continued to delay decisions due to concerns about manipulation safeguards, causing disappointment. 

Trading on unregulated offshore exchanges using stablecoins raises authenticity concerns, casting doubt on the true nature of market activity 

Financial troubles within the Digital Currency Group (DCG), including a subsidiary's large debt to the Gemini exchange, are impacting the market. 

Genesis Global Trading's bankruptcy, linked to losses from Terra and FTX collapses, could lead to forced selling of Grayscale Bitcoin Trust positions. 

Regulatory actions against Binance, accusations of misleading practices, and lawsuits against Coinbase for crypto classification as securities contribute to market uncertainty.