Analysis: The cryptocurrency market declines under the combined effects of various factors such as the "September Effect"

BTC Markets crypto analyst Rachael Lucas stated, "The decline in the crypto market today is not due to a single catalyst, but seems to be the result of multiple factors. Technical indicators show that the US Dollar Index (DXY) is oversold on the daily chart, which could suggest a possible rebound for the dollar, traditionally leading to downward pressure on risk assets like cryptocurrencies." Lucas added that seasonal factors might be related to market downturns. The "September effect" often leads to poor market performance due to portfolio rebalancing, tax loss harvesting and heightened caution ahead of U.S elections.