Recent economic data in the U.S. has led to declines in the prices of major cryptocurrencies, Bitcoin and Ethereum. Investors exercise caution as they await further directives from the Federal Reserve.
Bitcoin Nears 6-Week Low
Bitcoin fell below $113,000 on Wednesday, nearing its lowest levels in six weeks. The downturn began after hotter-than-expected U.S. macro data last week dented optimism around monetary easing. Profit-taking at record highs earlier this month has now turned into sustained selling pressure.
Ethereum Holds Critical Support
Ethereum also faces a decisive moment. Analysts highlight $4,200 as a critical support level; a breakdown could see ETH slide toward $3,900. For now, buyers are attempting to defend this zone, but the broader market tone remains fragile.
Spotlight on Powell’s Jackson Hole Speech
The central focus is Fed Chair Jerome Powell’s upcoming remarks at the Jackson Hole symposium. Investors are eager for clues about the September meeting, with markets currently split on whether the Fed will move toward easing or maintain a hawkish tone. Peter Chung, head of research at Presto Research, noted that Powell’s comments could set the immediate direction for crypto.
For now, traders appear to be in limbo. Short-term volatility is likely, with Bitcoin stuck under pressure and Ethereum battling to hold its floor. The outcome of Powell’s speech could determine whether the market stages a rebound or slides further into correction territory.
