What Was Behind The Bitcoin And Ethereum Price Crash?

Bitcoin and Ethereum have started September with price declines due to several macroeconomic factors. The effects of the Yen carry trade are still impacting the market, as investors sell riskier assets like cryptocurrencies to unwind their carry trade positions. The Bank of Japan's recent hawkish statement on rate hikes has sparked fear among traders, leading to more selling pressure on Bitcoin and Ethereum. The US stock market crash on September 3 also contributed to the price crash, with over $1.05 million being wiped out, leading to a wave of sell-offs for Bitcoin and Ethereum. Outflows from Spot Bitcoin and Ethereum ETFs were significant on that day, totaling $287.8 million and $47.4 million, respectively. A bullish outlook for Bitcoin and Ethereum is urgently needed, with hopes that the US Federal Reserve will cut interest rates at the next FOMC meeting to inject more liquidity into the market. At the time of writing, Bitcoin and Ethereum are trading at around $57,160 and $2,400, respectively. The crypto market is closely watching the upcoming FOMC meeting for potential relief. The current bearish sentiment towards cryptocurrencies is largely driven by macroeconomic factors and the ongoing effects of the Yen carry trade.