Cryptocurrency market plummeting on September 4th: causes unexplored

In the financial landscape, there's a brewing storm of anticipation as economic experts and investors predict the U.S. Federal Reserve to issue new bonds in September 2025, in response to an expected interest rate cut. The consensus among several institutions is a 25 basis point reduction, marking the beginning of a new easing cycle. This decision is driven by concerns over slower labor market growth and inflation risks.

Meanwhile, the labor market has shown signs of a slowdown. According to a recent report by the Labor Department, the number of job vacancies dropped sharply in July. However, the economy added 73,000 jobs a month earlier, and economists expect the Non-Farm Payrolls (NFP) data to show that the economy created 75,000 jobs in August. A prior report revealed that the private sector added 54,000 jobs in August, significantly lower than the previous 106,000 and the median estimate of 65,000.

The crypto market, too, has been experiencing fluctuations. Bitcoin, currently trading at $111,000, has seen a decline of 0.76% in the past 24 hours. Ethereum has also dropped by 0.51% to $4,400. The market capitalization of all cryptocurrencies has dropped by 70 basis points to $3.82 trillion. The decline in the crypto market is primarily due to the upcoming NFP data and increased selling pressure from liquidations, which rose by 10% to $228 million in the last 24 hours.

The Crypto Fear and Greed Index has moved to the neutral point, currently at 44. Despite this, there's a glimmer of hope for a potential crypto market rebound this month, with the main catalyst being the anticipated interest rate cuts by the Federal Reserve. Top altcoins like Solana, XRP, and Hedera Hashgraph are awaiting exchange-traded funds approvals, which could also contribute to a crypto market recovery.

The Altcoin Season Index remains unchanged at 52, indicating a slight preference for altcoins over Bitcoin in the market. However, no information about a potential BTC breakout or breakdown is provided in the text.

As we navigate through these economic and market fluctuations, it's essential to keep a watchful eye on the developments in the labor market and the Federal Reserve's decisions regarding interest rates. The crypto market, too, will continue to be influenced by these factors, making it an exciting and dynamic space to observe and invest in.