The cryptocurrency market is ailing under pressure today, with the market cap dropping 1.95% to $3.96 trillion. Trading volume stands at $135.69 billion, reflecting reduced participation compared to recent sessions. Bitcoin dominance has edged higher to 57.6%, while Ethereum holds 13.1%. The Altcoin Season Index stands at 67/100, indicating a partial rotation into BTC. Sentiment remains muted, with the Fear & Greed Index at a neutral 47, while the average crypto RSI at 36.18 suggests the broader market is in oversold territory.
The decline comes from a mix of regulatory pressure, leveraged positioning, and weakness across major altcoins.
Regulatory Pivot
\Markets reacted negatively to the SEC’s updated ETF guidelines issued on September 21. While they clarified the framework for crypto funds, the stricter compliance checks weighed on sentiment, especially for altcoins. In parallel, the U.S. Treasury opened a comment period for the GENIUS Act, which may impose reserve rules on stablecoins. These updates raised caution about XRP and Solana ETF approvals expected later this year. Traders are closely watching the SEC’s ruling on Grayscale’s multi-asset ETF due by September 30.
Derivatives Overhang
Perpetual open interest surged 18% to $929.3 billion, while futures hit $3.9 billion. However, funding rates turned slightly negative at -0.0038%, pointing to excessive long leverage. This set the stage for a flush-out. The correlation between Bitcoin and Nasdaq-100 dropped to 0.55, weakening macro support. Analysts warn that a break below the $3.93T total market cap level (50-day EMA) could trigger further algorithmic selling.
Altcoin Weakness
Altcoins are bearing the brunt of today’s move. Dogecoin slumped 7.5% as whale accumulation couldn’t offset retail selling. OpenLedger plunged 15% following an airdrop-related unlock. The Altcoin Season Index fell 5.8%, signaling rotation into Bitcoin, which added 0.56% in dominance.
Bitcoin price faced rejection at $117k, with a failed breakout sparking automated selling. Its market cap stands at $2.27 trillion, supported by $31.62 billion in daily volume.
Ethereum price dropped 4.29% to $4,286 after $210 million in futures positions were liquidated. ETF outflows of $196.6 million last month also weighed on sentiment. A break below $4,350 triggered cascading sell orders.
XRP price slipped below $3.00 support, now trading near $2.88. Its ETF debut sparked a sell-the-news reaction, while Bitcoin’s rising dominance drained liquidity from altcoins.
The market is reacting to regulatory uncertainty, excessive leverage in derivatives, and weakness in major altcoins, especially ETH and DOGE.
Ethereum saw $210 million in futures liquidations after breaking key support, making it the hardest-hit asset.
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