The cryptocurrency market experienced a sharp downturn recently, with Coinbase suffering its worst week of the year and Marathon Digital plummeting by 20%. Broader crypto-related equities hit their lowest point since February, reflecting concerns about the U.S. economic outlook and a general decline in risky assets, including Bitcoin and Ether. 

Historically, September has been a challenging month for crypto, adding to the pessimism; the Crypto Fear & Greed Index is now in "Extreme Fear." Market volatility was compounded by weak U.S. labor data, further impacting investor sentiment. 

Despite these setbacks, trading volumes rose in August, suggesting some continued market engagement. Attention is now on the Federal Reserve's potential interest rate cut, which could impact crypto markets.

Finsum: We are seeing an increased correlation between crypto and traditional market moving news, this could be a long term trouble or a short term reflection of the asset classes risk.