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The two largest cryptocurrencies declined for the second consecutive week, making investors curious about how far the value drops and to what date. Read more about Bitcoin and Ethereum price deterioration and their impact on the crypto market’s future. Get expert insights on further predictions in response to market trends.
Cryptocurrency Market Sees Significant Decline
Undoubtedly, cryptocurrency has become a revolutionary way of earning money, ignoring that it is digital compared to physical cash. Recently, the crypto market has become dynamic and gets only goodwill. On this point, if the two largest cryptocurrencies by market cap decrease, it will equally incite investors and traders in the community.
Bitcoin's Value Drops
September 6 was the worst day for Bitcoin holders and analysts. Why? Its value dropped further compared to the first week of the following month. This decline is consecutive, with no chance of an increase.
It dropped from $59,000 to $54,000, representing an 8% loss from trading on 2 September. Bitcoin is heading for its fifth negative week in a row. The decline caused the pulling out of $726 million from cryptocurrency investments—of which $643 million came from Bitcoin funds—is the reason for this fall.
Ether's Decline dropped 3.5 %
Even Ethereum prices are not stable. They have been sinking for the past two weeks, totalling $98 million in losses. Investors are highly concerned about the ETH downtrend behaviour on behalf of crypto’s significant growth in recent years.
Reasons for Decline in the Value of BTC & ETH
According to a recent report, the August payroll grew by a less-than-expected 142,000 unemployment rate. Also, the slowing of the labour market pushes prices lower. The president of OKX, a crypto exchange, has also believed that the above-mentioned factors are the reasons for the decline of BTC, ETH, and SOL prices.
Market Concerns
The decline in Bitcoin and Ethereum prices is depressing. However, what the industry market and its inhabitants have in store is interesting. Firstly, they are anxiously waiting for the situation to flip 180 degrees. For instance, Donald Trump’s stance on supporting crypto and Winklevoss Twins to give their back to the digital asset domain.
On the other hand, Orlando Bravo, founder of the world’s largest tech Buyout firm, declares that he will never touch crypto due to the collapse of FTX. Three years ago, the same founder called FTX a sophisticated and cutting-edge crypto exchange. Overall, he has expressed scepticism about cryptocurrency.
Outflows from Crypto Investment Products
It does not matter whether the reasons for the decline of cryptocurrencies are unemployment or any other; it has heavily impacted the pullout of products. The outflow is primarily saturated in the United States, with $721 having departed from the market.
New Hope
Last Pitchbook just released a report on Crypt VC funds, revealing that the past two years have been tumultuous for crypto fundraising, but signs of recovery are starting to emerge.
Conclusion
The news that Bitcoin and Ether are heading for a second week of losses is alarming and a major concern for investors. Experts uncover two reasons for this decline: unemployment or slow market growth. However, there are many hidden reasons behind this price drop. Investors and analysts are only waiting for the situation to turn the table and entrust new hopes for the cryptocurrency’s bright future.
