Deniz 
Late Tuesday, the Bitcoin price dropped momentarily below $60,000 amid a wider decline in the crypto market. Bitcoin down 5.93% in the past 24 hours to $59,203 at the time of writing. Ether dropped again, about 8.27%, and is presently trading for $2,467.
Of the ten cryptocurrencies, Solana dropped 6.87% to $147.29, and Dogecoin lost 6.18% in value to trade at $0.099. The market for cryptocurrencies dropped 6.3% over yesterday.
BTC Markets Crypto Analyst Rachael Lucas told The Block that although there isn’t a single trigger for today’s dip in the crypto markets, it looks to be a mix of elements. “Technical indicators show that the U.S. Dollar Index (DXY) is oversold on the daily chart, which could suggest a possible rebound in the dollar, generally leading to downplay in risky assets like cryptocurrencies.”
Lucas further mentioned that the market collapse might have seasonality involved. Traditionally, portfolio rebalancing, tax-loss harvesting, and more prudence before U.S. elections have caused markets to underperform under the “September Effect.”. The crypto analyst claims that several of the reported crypto liquidations in the last day have aggravated such negative aspects. Over $287 million worth of long crypto positions have been liquidated in the past 24 hours, according to Glassnode statistics.
“Short-dated volatility was bid, with traders scrambling to buy downside protection (puts),” said Augustine Fan, Head of Insights at SOFA.org. “Based on underlying momentum remaining poor from the supply overhang and lack of on-chain catalysts in the near term.”
As spot ether ETFs noted continuous net outflows and recorded their eighth straight negative flow day on Monday, ether prices have displayed further challenges. “ETFs kept their slow momentum while the Ethereum mainnet stays caught in a bit of an identity crisis,” Fan remarked.
“ETH has struggled more than other cryptocurrencies since the Ethereum Foundation has been criticized for its $100 million budget, which comes from ETH, which would add more sell pressure,” independent market researcher Nick Ruck also stated in a statement. Lucas of BTCMarkets projected that, should the currency keep trading below its 50-day moving average—a crucial technical milestone on the daily chart—bitcoin would reach lows of about $56,000 in the near term. TradingView data shows that the 50-day moving average of Bitcoin right now is $61,991.
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