This week, Bitcoin (BTC) fell to $112,000, causing alarming sentiment in the crypto market and expectations for Federal Reserve Chair Jerome Powell's speech.
Overview of BTC Situation
The recent fall of Bitcoin to $112,000 highlights the fragile sentiment in the market. Investors are reacting acutely to inflation data and changing expectations for interest rate cuts. Analysts warn that if Bitcoin fails to hold the $112,000 level, deeper losses could follow.
Wave of Liquidations in the Crypto Market
The downturn in BTC spilled over to the broader crypto market, leading to over $450 million in liquidations in just one day, according to CoinGlass. Ethereum led the losses with $180 million, while Bitcoin accounted for more than $100 million. Other altcoins like XRP, SOL, and DOGE also faced significant liquidations.
Future Perspectives
Despite the current downturn, many analysts see hope. They compare the present situation with mid-cycle corrections in past bull runs in 2017 and 2021, which paved the way for new highs. If Powell confirms rate cuts in September, liquidity may return and fuel another BTC rally.
Thus, trader focus is currently on Jerome Powell's speech at Jackson Hole, which may determine the future of Bitcoin and the entire crypto market.
