What’s Fueling Today’s Crypto Market Crash?

September, traditionally a concerning month for the stock and crypto market, has started to take a bearish shape as the assets are suffering today. Talking of crypto specifically, CoinGlass data reveals that Bitcoin price faced major downtrends this month historically, and today’s consolidation to $111k is putting this to the test. While there’s an entire month remaining to figure out the trajectory, let’s discuss why tokens are crashing today.

Crypto Market Today: BTC, BNB, SOL, and Rest Altcoins Crash

The turbulence in the performance of the digital assets has been quite high since mid-August. Although recovery also followed the crypto market crashes, the sudden shift in trend showcases investors’ puzzled trading behaviors, as they are concerned about various macroeconomic events.

Today, 93,563 traders were liquidated, wiping out $220 million worth of crypto positions. This happened as BTC, BNB, and SOL prices, and the rest of the altcoins faced a correction, pulling the broader market cap down to $3.82 trillion.

Although the fear and greed index shows neutral sentiments, the heatmap shows most tokens in red.

Top Reasons Why the Crypto Market is Crashing Today?

The first week of September has quite a crucial set of U.S. economic data releases, which is why the crypto market is on edge. This is because these releases could shape the Fed’s decision on the interest rate. Notably, investors have been awaiting rate cuts since the beginning of the year, but it has not happened yet, so now eyes are on the September FOMC Meeting. 

As a result, every macroeconomic event, data release, Trump or Jerome Powell statement is impacting the token’s performance. After the release of the JOLTS report yesterday, today, the eyes are on the U.S. ADP Nonfarm Employment and Initial Jobless Claims, which are adding volatility to the market.

Crypto analysts like Crypto Rover add that Nonfarm Payrolls and Unemployment rate are the most important data of the month. According to his analysis, weak jobs and higher unemployment are bullish for stocks and crypto, whereas the strong jobs reports could delay the Fed’s interest rate cuts.

CRYPTO MACRO STORM AHEAD.

👉 Sep 4 (Today) – Initial Jobless Claims
– Early read on labor market strength.

👉 Sep 5 (Friday) – Non-Farm Payrolls & Unemployment Rate
– Most pivotal data of the month
– Weak jobs + higher unemployment → Risk assets rip higher (crypto & stocks)
-… pic.twitter.com/rHZY8AWUnU

— Crypto Rover (@rovercrc) September 4, 2025

Following this, the August CPI and Core CPI release on September 11 is also important. If the CPI comes below 2.5%, the odds of rate cuts would increase, currently at 97.4% per CME FedWatch data.

Additionally, the $3.28 billion in Bitcoin options and $1.28 billion in Ethereum options expiring tomorrow are also adding to the pressure. Not to mention, the crypto whale movement, for example, a 12-year dormant wallet awakening with $53M fortune is adding selling pressure.

Besides, the lack of bullish catalysts is troubling the investors’ trading decisions. Amid all these uncertainties and volatile events, the crypto market is crashing today.

Pooja Khardia

Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section.

Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights.

Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry.

When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.