september 19 was the worst day for cryptocurrencies in the last 2 months

According to CoinMarketCap, the cryptocurrency market suffered significant losses, falling by $ 165 billion in a week. Monday, September 19, was particularly difficult for digital assets — bitcoin fell well below $ 19,000, while ethereum dropped to $ 1300.

According to analysts, the main reason for the drop in the value of cryptocurrencies was the upcoming Federal Reserve meeting on September 21. The Fed promotes a tough policy and this cannot but affect both the traditional stock market and the cryptocurrency market. The Fed plans to announce a 75 basis point (0.75%) rate hike.

Another reason for the crypto market collapse was the «hyper-hope» for a bullish rally after The Merge, but instead, most traders chose to take profit, which negatively affected the ETH rate. Thus, on September 19, the value of the flagship cryptocurrency dropped by 8.16% per day — ETH was trading at $ 18,435. As for ethereum, it fell by 11.11% in 24 hours, reaching a value of $ 1295.

Obviously, cryptocurrency investors will have to wait until September 21 and hope that digital assets will be able to recover. Regarding the transition of ethereum to the green blockchain and its consequences, Paolo Ardoino, CTO of Tether and Bitfinex, believes that ethereum is still lagging behind bitcoin and will never be able to compete with the flagship cryptocurrency. And Merkle Science’s chief researcher Coby Morgan said that Ethereum’s transition to the PoS consensus mechanism will make ETH more centralized and vulnerable to government interference and censorship.

Earlier this month, cryptocurrency experts called September 13 the most important date for digital assets. At the time, the reason for this conclusion was the upcoming update of the ethereum and the publication of new data on the consumer price index (CPI) in the United States. However, even because of these events, the cryptocurrency market did not collapse as much as it did on September 19.