Why is crypto going down? MYX Finance, Worldcoin, Pepe lead losses
The crypto market is going down today, Sept. 19, with popular tokens like MYX Finance, Worldcoin, and Pepe among the top laggards.
- The crypto market is crashing as profit-taking continues.
- MYX Finance, Worldcoin, and Pepe were among the top laggards.
- The drop is also happening after the Federal Reserve cut.
Bitcoin (BTC) price dropped to $116,000, while other large names like Dogecoin (DOGE) and Ethereum (ETH) fell by over 3% in the last 24 hours.
MYX Finance (MYX) price dropped to $11.77, down by over 35% from its highest point this week. Sam Altman’s Worldcoin (WLD) plunged to $1.5170, down by 31% from the YTD high, while Pepe (PEPE) is down by over 15% from this week’s high.
Crypto going down amid profit-taking
One of the main reasons the crypto market is going down is profit-taking among investors following days of strong gains. Indeed, a look at some of the top laggards shows they were the biggest gainers during the week.
Pepe Coin was up by 40% from its lowest level this month, while MYX Finance jumped by almost 2,000%. Worldcoin jumped by 167% from its lowest point this month after Eightco launched a WLD treasury and named Dan Ives as a director.
It is common for the stock and crypto markets to take a breather after a big rally. This scenario has been more pronounced in the crypto industry recently, with any rally finding substantial resistance.
Selling the news after the Fed interest rate cut
The other main reason crypto is going down is that investors are selling the news after the Federal Reserve’s interest rate cut. In a statement on Wednesday, the FOMC slashed rates by 25 basis points and hinted at more cuts at its next meeting.
A Federal Reserve cut is typically bullish for Bitcoin and other cryptocurrencies. However, this cut was priced in by market participants, with Polymarket odds of a cut above 90% before the meeting.
Bitcoin price rising wedge pattern
BTC price chart | Source: Coin Insider Daily
Additionally, crypto traders are likely concerned that the Bitcoin price has formed a rising wedge and a bearish divergence pattern. A rising wedge is composed of two ascending and converging trendlines, and a bearish breakout happens when the two lines are about to converge.
The Relative Strength Index has formed a descending channel, a sign of bearish divergence. These two patterns point to a Bitcoin crash, which may impact other altcoins.
