3 Reasons Why the Crypto Market Had a ‘Flash Crash’ This Week

Jakarta, Pintu News – The cryptocurrency market sometimes experiences rapid price drops in a short period of time, known as flash crashes. These price movements can affect a wide range of digital assets, from Bitcoin (BTC) and Ethereum (ETH) to other altcoins such as Ripple (XRP) and Pepe Coin (PEPE). This phenomenon is usually triggered by certain market factors and can increase risk for investors.

Check out the 3 reasons why the crypto market had a flash crash this week!

Influence of NVIDIA Financial Report

According to Bankless Time, the crypto industry is under pressure ahead of NVIDIA’s earnings announcement, which is highly anticipated by the market. NVIDIA, as the world’s largest company and a leader in the artificial intelligence (AI) industry, has a significant influence on market sentiment.

If the financial report shows positive results, this could trigger positive sentiment in the market. However, if the results are disappointing, it could trigger further declines in both the stock and crypto markets.

This uncertainty has caused investors to be cautious, which is reflected in the declines seen in major stock market indices such as the Dow Jones, Nasdaq 100, and S&P 500, which each fell by more than 0.50% on Monday.

Read also: Ethereum Predicted to Surpass Bitcoin in 1-2 Crypto Market Cycles? Here’s the Analysis!

Federal Reserve Policy

Policy from the Federal Reserve (Fed) has also played a role in the crypto market’s decline. Fed Chairman Jerome Powell has indicated a possible rate cut in September, but markets are still waiting for further economic data to confirm the policy.

Consumer confidence data to be released by the Conference Board could provide clues about the strength of the US economy. In addition, data on personal consumption expenditure (PCE) and the number of new jobs in the US due on Friday will also be highly influential.

If the data shows weakness in the labor market, it will strengthen expectations that the Fed will cut interest rates, which could have an impact on the US dollar exchange rate and indirectly affect the crypto market.

Read also: Blockchain Technology Breakthroughs: Chainlink Integration and Aptos Growth!

Bitcoin (BTC) Technical Patterns

From a technical perspective, Bitcoin (BTC) is showing worrying indications. The chart pattern formed shows a very bearish ‘rising wedge’, which could indicate further price declines.

When the lines in this pattern converge, it can signal the beginning of a big drop. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators also show bearish divergence.

If Bitcoin (BTC) price breaks below the wedge pattern, it could trigger a price drop to levels below $100,000, which would further impact the overall crypto market.

Conclusion

The combination of NVIDIA’s earnings uncertainty, the Federal Reserve’s monetary policy, and Bitcoin’s (BTC) bearish technical signals have created the perfect conditions for a flash crash in the crypto market.

Investors are advised to follow these developments closely and consider reorganizing their portfolios to deal with any volatility that may occur.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Bankless Times. Top 3 Reasons Why the Crypto Flash Crash is Happening. Accessed on August 28, 2025
• Featured Image: Generated by Ai