Why is Bitcoin and the Crypto Market Down Today?

TLDR:

• Crypto market drops as Bitcoin falls under $110K after strong U.S. GDP data and lower jobless claims.
• Over $162B was erased from crypto valuations as liquidations hit leveraged positions across exchanges.
• Spot Bitcoin ETFs saw $258M in outflows while Ethereum ETFs recorded their fourth day of withdrawals.
• New U.S. tariffs and a looming government shutdown are fueling a cautious mood in the crypto market.

The crypto market is under pressure once again. Prices are sliding, and traders are on edge. Bitcoin slipped under $110,000, and Ethereum is now below $4,000. Market-wide liquidations have erased billions from crypto valuations. Investors are bracing for what comes next.

U.S. Data Sparks Risk-Off Mood

Fresh economic data rattled risk markets on September 26, pushing crypto prices lower. The U.S. reported Q2 GDP growth revised to 3.8% alongside stronger manufacturing numbers. Jobless claims also came in lower than expected, signaling a resilient economy.

This shifted expectations for Federal Reserve policy, as traders had priced in deeper rate cuts to support assets. Risk markets pulled back quickly after the report, with crypto following equities lower.

Dwise, a crypto analyst, summed up the mood in a post, writing that “rent is due” and the market is “feeling the heat.” Bitcoin fell under $110,000, Ethereum slid near $3,924, and major altcoins including XRP, SOL, and ADA also moved lower.

Data from market trackers shows over $162 billion wiped from crypto valuations in a single day. Leveraged traders faced liquidations across exchanges as prices continued to slide.

ETF Outflows and Tariff News Add Pressure to the Crypto Market

U.S. spot Bitcoin ETFs saw $258 million in net outflows on September 25, with BlackRock’s IBIT the only fund to record inflows. 

Ethereum ETFs also posted their fourth straight day of withdrawals, totaling $251 million. Wu Blockchain reported the outflows, adding that market sentiment has turned cautious.

Geopolitical headlines added to the pressure. A fresh wave of U.S. tariffs will take effect on October 1, targeting imports of pharmaceuticals, trucks, and furniture. Traders fear these measures could slow economic activity and impact liquidity.

Budget disputes in Washington have raised the probability of a government shutdown, which could weigh on markets. This uncertainty has kept investors defensive and less willing to hold risky assets.

Market watchers say volatility could continue through the coming week as inflation data approaches. Many are now watching whether BTC can hold above $100,000 or if further selling will drag it lower.

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