The cryptocurrency market is reeling from significant losses as Bitcoin (BTC) and various altcoins take a nosedive following the U.S. Department of Justice’s (DoJ) crackdown on Nvidia. This development has sparked widespread concern among investors, leading to sharp declines in crypto prices across the board.
On September 4, Bitcoin’s price tumbled to $56,698, marking a nearly 4% drop in the past 24 hours. The flagship cryptocurrency’s decline is part of a broader market downturn that saw Ethereum (ETH), Solana (SOL), and XRP suffer significant losses as well. Ethereum, for instance, dropped by 6% to $2,373, while Solana fell by 6% to $128, and XRP slipped by 2% to $0.5527.
The DoJ’s recent subpoenas to Nvidia and other companies are believed to be at the heart of this market turmoil. The investigation centers on potential antitrust violations by Nvidia, leading to a 2.12% drop in the S&P 500 index. The global crypto market cap, in turn, plunged by 4.60%.
Despite these setbacks, the total crypto market volume surged by 15.14% to $65.59 billion, indicating heightened trading activity amid the price drops.
Key Developments
Bitcoin ETF Outflows: Bitcoin’s decline is closely linked to substantial outflows from Bitcoin ETFs, which saw $287.78 million withdrawn as of September 3. This exodus has further fueled bearish sentiment in the market.
Ethereum’s Decline: Ethereum experienced a 6% drop, trading at $2,373. Spot Ethereum ETFs also recorded significant outflows, totaling $47.40 million. The upcoming crypto project by U.S. presidential candidate Donald Trump, expected to be built on the Ethereum and Aave blockchains, has yet to impact ETH positively.
Altcoins Mirror the Trend: Solana’s price fell to $128, reflecting a 6% drop, while XRP declined by 2% to $0.5527. The broader altcoin market has been equally affected, with meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) losing 3% and 4% of their value, respectively.
Notable Gainers and Losers
While most cryptocurrencies suffered losses, Bitcoin SV (BSV) and Sui (SUI) managed to buck the trend, gaining 3% and 2%, respectively. On the other hand, Fantom (FTM), Bittensor (TAO), and Brett (BRETT) emerged as the day’s biggest losers, with each experiencing double-digit percentage declines.
Investor Sentiment
The ongoing downturn has heightened investor anxiety, particularly as the DoJ’s investigation into Nvidia continues to unfold. The market’s reaction has been swift and severe, with major cryptocurrencies struggling to regain their footing. As concerns about future price action persist, the market remains volatile, with further declines possible in the short term.
Investors will be closely monitoring developments in the Nvidia case, as well as any additional regulatory actions that could impact the broader crypto market.
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