Crypto Market Wipes Out September Gains as Bitcoin Barely Hangs On

The crypto market has entered negative territory for September, erasing nearly 5% of its total value in a single day. Despite Bitcoin managing a slim gain of 1% for the month, the broader market capitalization has suffered, shedding $162 billion due to sell-offs and profit-taking. Bitcoin's price, currently hovering around $109,000, remains the only thing preventing more significant losses in the crypto market, which stands at $3.73 trillion. Historically, September has been a challenging month for cryptocurrencies, with eight out of the last eleven years witnessing negative returns. Contributing to this year’s downturn is a wave of liquidations triggered by Ethereum's drop beneath the $4,000 mark, which resulted in over $500 million in liquidations. The Altcoin Season Index indicates a retreat to Bitcoin, with investors shifting away from smaller cryptocurrencies amid market unease. Upcoming regulatory events, such as the Senate’s crypto tax hearing, present potential risks to market stability. Although technical indicators suggest Bitcoin could struggle, there is a degree of optimism regarding October, typically viewed positively by traders, as they anticipate possible upward price movements.

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