Following a recent rally, Bitcoin and Ethereum prices have continued to decline due to profit-taking and upcoming macroeconomic changes.
Reasons for Cryptocurrency Decline
The cryptocurrency market is experiencing downward pressure due to profit-taking after record peaks and the liquidation of leveraged positions. Data indicates that Bitcoin's price decreased by 2.78%, dropping to $113,234 and testing an intraday low of $112,709. Ethereum also faced losses, falling over 5% to around $4,070. Short-term market interest has waned, which also reflected in changing trading volumes.
Market Focus on Key Events
During the consolidation phase, investors are concentrating on movements in ETFs and macroeconomic catalysts. After a record-breaking July, inflows into spot Bitcoin ETFs have slowed, with net outflows starting to appear. A similar situation is observed with spot Ethereum ETFs. The market anticipates the release of the July FOMC minutes and Fed Chairman Jerome Powell’s speech at Jackson Hole on Friday.
Expert Expectations for the Upcoming Period
According to Peter Chung, Research Director at Presto Research, the market anticipates an interest rate cut in September. A contradiction from Powell could lead to a sharp correction, whereas a more dovish tone might spark a rally. Recent market volatility is seen as a positioning move towards an uncertain outcome.
Currently, the cryptocurrency market is in a price decline phase, driven by both profit-taking and the anticipation of significant macroeconomic news. Investors remain cautious and are awaiting further developments.
