The recent crypto crash is ongoing, with Bitcoin and most altcoins like Ripple (XRP), Cardano (ADA), Dogecoin (DOGE), and Sui (SUI) falling by over 5% in the last 24 hours. Combined, the market capitalization of all tokens dropped by 3.3% in the last 24 hours to $3.76 trillion.

Bitcoin and Ethereum Options Expiry

One major reason why the crypto crash is happening is that Bitcoin and Ethereum options worth over $15 billion just expired. Historically, BTC and ETH prices normally drop sharply before and shortly after this expiry happens. 

Bitcoin plunged to $108,000, while Ethereum dropped to $4,337. Most altcoin prices normally drop whenever BTC and ETH are in a downward trend. 

Federal Reserve Uncertainty

The crypto crash is also happening as concerns about the Federal Reserve remains. In his statement at the Jackson Hole Symposium last week, Jerome Powell hinted that the bank would slash interest rates, warning that the labor market was slowing. 

Data released this week, however, hinted that any rate cut will be a hawkish one. A report on Thursday showed that the economy expanded by 3.3% in the second quarter of last year. Another one released on Friday revealed that the US inflation remained high. 

Therefore, there is a possibility that the Fed cuts will not come out faster as analysts were expecting. 

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Slowing AI Growth

The stocks and crypto crash is happening because of this week’s NVIDIA earnings. In a statement, the company said that its revenue jumped by 53% in the second quarter to $46 billion. It expects that the third-quarter revenue will be over $50 billion and the full-year one will be more than $200 million. 

However, the company also warned that its business was starting to slow as companies start to scale back their investments. As a result, its stock has plunged, dragging the Nasdaq 100 and the S&P 500 indices, and to some extent, the crypto market. 

Crypto Crash Triggered by Bearish Bitcoin Pattern

Technicals have also contributed to the ongoing crypto crash. The most important one is that Bitcoin price has formed a highly bearish rising wedge pattern on the weekly chart and a double-top on the daily one. 

Additionally, Bitcoin has been forming a bearish divergence pattern on the weekly chart timeframe. As such, it may crash further below the key support at $100,000, dragging the broader crypto market lower. 

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