The Bank of Japan's Rate Hike Signals Increased Volatility, Impacting Global Markets

Bitcoin and Ethereum ETFs face $287.8 million in outflows, worsening the crypto market decline. Disappointing U.S. economic date raise recession fears, adding pressure to crypto market

Bitcoin (BTC) and Ethereum (ETH) prices fell sharply on Monday evening, while other major cryptocurrencies, including Solana (SOL), XRP, and meme coins, also saw significant losses.

The broader crypto market slid over 4% in the past 24 hours, according to CoinMarketCap data. Among the top performers, BTC was trading at $36,773.33, down 3.76% in the past 24 hours, while ETH fell 4.24% to reach $2,700.33.

Several factors appeared to be driving the market lower, including concerns over the Bank of Japan's signaling of further potential rate hikes.

The Nikkei 225 index dropped 4.24% on Monday following the news. Traders expressed concerns that the rate hikes could lead to increased volatility, which may also impact the crypto market.

Bitcoin and Ethereum ETFs saw large outflows on Monday, September 3, to the tune of $287.8 million.

Of the total outflows, Fidelity's Bitcoin ETF saw the highest outflows at $162.3 million, while several other ETFs also recorded outflows.

Meanwhile, Ethereum ETFs saw outflows of $47.4 million. The sustained outflows from these ETFs indicated growing caution among investors, contributing to the overall market decline.

September has historically been a poor month for various asset classes, including cryptocurrencies.

Bonds and gold have also tended to perform poorly in this month, and this year was no exception.

The crypto fear and greed index stood at 27, indicating widespread fear among investors.

This led to a cautious approach, with many opting to sit on the sidelines.

In other news, the U.S. Department of Justice reportedly expanded its antitrust investigation into Nvidia, issuing subpoenas to the company.

This increased regulatory scrutiny had a wider impact, affecting not only tech stocks but also the global crypto market.

Finally, recent U.S. economic data showed a slowdown in factory activity, with the ISM Manufacturing PMI coming in at 47.2 versus the expected 47.5.

This weak data raised concerns about a potential recession.

Traders were keeping a close eye on upcoming job reports, which may influence the Federal Reserve's decision on interest rates.

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