Why is the crypto market down today?

Crypto prices keep crashing, and it seems like there’s no bottom in sight. Here are three reasons why cryptocurrency prices are falling today.

Crypto prices are falling on Oct. 7 as Bitcoin (BTC) failed in its attempt to lock in gains above the $20,500 level. For the past 115 days, BTC price has been pinned between $17,600 and $24,500, and the current price action simply shows Bitcoin trading within the lower section of the range.

Ether (ETH) and a majority of altcoin prices are also seeing single-digit losses. Generally, the crypto market is tracking the pullback taking place in equities markets, with the S&P 500, Dow and Nasdaq down 2.16%, 1.62% and 3.03%, respectively.

Investors know that cryptocurrencies exhibit higher than average volatility, but this year’s drawdown has been extreme. After hitting a stratospheric all-time high at $69,400, Bitcoin price crumbled over the next 11 months to an unexpected yearly low at $17,600.

At the moment, investor sentiment remains soft as investors continue to avoid risk and wait to see whether the Federal Reserve’s current monetary policy will alleviate persistently high inflation in the United States.

Fresh data on the United States labor market shows that for the seventh consecutive month, the market added more jobs than anticipated, which is opposite to the Fed’s objective of cooling down the economy as a way to put a cap on inflation.

The strength of the labor m