Major Digital Assets Decline

Major digital assets slipped on Thursday, Sept. 4, after two days of gains, as markets weighed President Donald Trump’s latest request that the Supreme Court overturn a ruling striking down many of his trade tariffs.

Bitcoin (BTC) dropped 2.4% over the past 24 hours to $109,500, bringing its weekly losses to 3.2%. Ethereum (ETH) is down 4% on the day to $4,309, now down 6% over the week.

Gadi Chait, Head of Investment at Xapo Bank, commented that “Red September” has historically posed challenges for Bitcoin, referring to September’s reputation as a weaker month for both the stock market and cryptocurrencies.

BTC Market Cap

XRP fell over 2% to $2.81, while Solana (SOL) dipped 3.4% to $204.

In contrast, pumpfun’s PUMP token surged 12% on the day following token buybacks exceeding 5% of PUMP’s total supply.

The broader cryptocurrency market capitalization dropped 2.2% over the past 24 hours to $3.87 trillion, with Bitcoin dominance at 56.4% and Ethereum at 13.4%, per CoinGecko.

Liquidations and ETFs

Over the past 24 hours, nearly $256 million in crypto positions were liquidated, including $202 million of long positions and $53 million of shorts, as reported by CoinGlass. Ethereum led with over $79 million in liquidations, followed by Bitcoin at $44 million.

Spot Bitcoin exchange-traded funds (ETFs) garnered $301 million in net inflows on Wednesday, Sept. 3, marking their second consecutive day of gains, according to SoSoValue. Chait noted, “As institutional capital continues to pour in and ETFs draw in around $300 million worth of inflows, Bitcoin’s trajectory remains strong.”

Conversely, spot Ethereum ETFs experienced a third consecutive day of outflows, with more than $38 million withdrawn on Sept. 3.

Tariff Drama

Market uncertainty increased as investor confidence was affected by Trump’s ongoing feud with a federal appeals court after it ruled that several of his tariffs were unlawful. This raised concerns over the future of U.S. trade policy.

In response, Trump’s administration requested the Supreme Court to urgently review the president’s authority to impose tariffs under a 1977 emergency powers law. Trump stated, “Today, a Highly Partisan Appeals Court incorrectly said that our Tariffs should be removed… If these Tariffs ever went away, it would be a total disaster for the Country.”

Despite these challenges, macro factors remain supportive for digital assets, with the Federal Reserve’s upcoming Sept. 17 meeting indicating a 97% chance of a rate cut—up from 91%—according to MacroMicro. Chait added, “With a potential US rate cut on the horizon, liquidity conditions could ease, increasing demand for risk assets and potentially boosting Bitcoin by 5-10%.”