Crypto Market Dips: Here’s Why Prices Are Down Today (Sep. 15 Analysis)

Market jitters hit digital assets as regulatory uncertainty and macroeconomic pressures trigger sell-offs.

Traders are taking profits after recent rallies—because nothing scares crypto investors more than actually making money.

Technical indicators flash caution as major support levels get tested across top tokens.

Meanwhile, traditional finance pundits are already drafting their 'I told you so' tweets—because predicting 1% of 100% volatility apparently makes them geniuses.

This is normal market digestion. Crypto's long-term trajectory remains fundamentally intact.

Crypto market crashes as liquidations jump

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.

Most cryptocurrencies slipped amid profit-taking

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 Indexjumps to 70 and above. 

Positioning for the Federal Reserve decision

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.