Why did cryptocurrencies plummet today? Who is the driving force behind the decline in BTC, ETH, and

Reason for today's collapse in cryptocurrencies: Five key news behind the market decline

Why did cryptocurrencies fall sharply today? Just one day after the market rebounded by nearly 4% on September 4, the market turned green again (Note: The original text here is red, which refers to a decline/loss status. In the Chinese context, it is often called "turning green" or "falling". To accurately convey the meaning, it is adjusted to "falling again"), and traders are eager to know what happened to cause the situation to change so quickly. The answer is not caused by a single incident, but by multiple negative factors such as the Federal Reserve's interest rate game, strong U.S. employment data, hacking of wallet clusters, customer data leak updates, and agreement closures that erupted on the same day.

Core Points

• Bitcoin fell to US$79,693.31, Ethereum slipped to US$2,458.12, XRP fell to US$1.41, and the total market value of global cryptocurrencies fell to US$2.78 trillion.
• AMC (A Meme Coin), Boner Coin and Metadata were among the top of today's decline list, with AMC falling more than 55%.
• Traders are closely watching the next Fed interest rate decision on September 16. Earlier, President Trump threatened to stop trade with major trading partners if interest rates were not cut.
• According to CoinGecko data, the global market value of cryptocurrencies is US$2.78 trillion, down 0.6% in the past 24 hours. Trading volume during the same period reached US$89.3 billion. Bitcoin's market share is 57.5%, and Ethereum's market share is 10.8%.

Performance of Major Currencies

Bitcoin fell more than 1.2% to $79,693.31; Ethereum fell more than 1.9% to $2,458.12; and XRP fell about 2.5% to $1.41. The correction came the day after the three assets recorded gains of as much as 4%, demonstrating how quickly market sentiment has shifted.

Currency with the biggest decline today

Currency 24-hour price AMC (A Meme Coin) -55.9% $0.04549 Boner Coin (BONER) -34% $0.03534 Metadata (META) -38.4% $0.01361 AMC ranked first among the losers, with a decline of more than 55% in 24 hours.

Why did cryptocurrencies plummet? Analysis of the underlying causes

Trump's Federal Reserve interest rate threat

According to the Kobeissi Letter, President Trump threatened to stop trade with countries with trade deficits in the United States if the Federal Reserve does not cut interest rates on September 16. This covers about half of the United States 'trading partners, including Mexico, China , Germany and Japan . Newly appointed Federal Reserve Chairman Warsh is now expected to raise interest rates rather than cut interest rates, further exacerbating market unease.

U.S. employment data was surprisingly strong

Kobeissi Letter also pointed to the unexpected U.S. jobs report as a trigger for market volatility. The U.S. economy added 162,000 new jobs a month, almost three times the forecast. Strong economic data usually boosts the market, but against this backdrop, the market was worried that it would lead to interest rates rather than interest rates, so both stock and cryptocurrency markets fell on the news.

Trezor data breach update

Hardware wallet maker Trezor confirmed that a data breach at its former logistics partner ShipMonk affected more customers than initially reported. The names, emails, phone numbers and addresses of 67,000 U.S. customers who placed orders between November 2019 and August 2021 were leaked. Trezor said its systems and devices remain secure, but has warned users to be wary of fake emails and phone calls.

Router Protocol shutdown

Cross-chain project Router Protocol announced on September 5, 2026 that it will end operations and be closed before September 30, 2026. The project team said on its official account that it had explored options such as commercialization, licensing and acquisition in the past year, but failed to keep the project running. The news added to the negative headlines that hit market sentiment today.

GoMining was hacked

On-chain surveillance company Specter reported that an attacker hacked into a wallet cluster associated with Bitcoin mining platform GoMining. The attack involved more than 600 addresses, stole approximately $2.8 million, and lost approximately $2.79 million from a service wallet alone. Specter pointed out that GoMining's connection was based on on-chain clues and was not confirmed by the project itself.

Future direction of the cryptocurrency market

Economist Peter Schiff said that President Trump 's threat to cut off trade with countries with trade surpluses in the United States, rather than using tariffs, could have serious counter-effects. Schiff believes that stopping trade will cause shortages, pushing up prices and unemployment.

His view is that if the Fed does not cut interest rates at its September 16 meeting, traders should be prepared for a deeper decline rather than a recovery.

Conclusion

Today's plunge shows how quickly market sentiment changes when political trends, jobs data and security events intertwine. Bitcoin, Ethereum and XRP all fell with the broader market, while AMC led the decline. With the Federal Reserve's September 16 decision yet to come, the cryptocurrency market may continue to fluctuate during this period.

YMYL Disclaimer :This article is for reference only and does not constitute financial advice. Cryptocurrency prices fluctuate violently and change rapidly. Always conduct independent research and consult a licensed financial adviser before making any investment decisions. Past price movements cannot guarantee future results.