Bitcoin (BTC) recently reached a new all-time high of over $124,000 but soon began to decline due to US economic data.
What Happened to Bitcoin?
After reaching a new record on August 14, Bitcoin continues to decline. Recent data from the US, which negatively impacted investor confidence, showed inflation higher than expected. As a result, Bitcoin has dropped by over 2% in the last 24 hours, reaching $115,600.
Analysts' Opinions on the Current Situation
According to Vincent Liu from Kronos Research, Bitcoin's decline is linked to US economic data and declining investor confidence. Liu remarked:
> "Bitcoin's recent decline is due to higher-than-expected US inflation, strengthening the dollar and fueling risk aversion."
He also noted that the statement from US Treasury Secretary regarding no new Bitcoin purchases for strategic reserves further eroded investor confidence.
Critical Levels for Bitcoin
However, BTC Markets Crypto Analyst Rachael Lucas indicated that the situation is not as dire for Bitcoin. She pointed out that spot ETF data suggests the market decline is related to capital rotation rather than a collapse. Lucas stated that key support levels for Bitcoin are at $115,000 and $112,500, and a break below these levels could pose a risk of a drop to $110,000. She also highlighted that the market is focused on the upcoming Fed's Jackson Hole Symposium, where a moderate tone from the Fed could revitalize market sentiment.
In the current situation, Bitcoin faces pressure from macroeconomic factors, but there are signs that the market is not on the verge of collapse but rather going through a phase of capital reallocation.
