en.bitcoinsistemi.com
The decline in Bitcoin (BTC) and altcoins, which began last week with US macro data and decreasing expectations for a Fed interest rate cut, continues as markets prepare for a possible hawkish stance from the Fed.
As Bitcoin approaches a 6-week low, investors await the minutes of the Fed's July meeting and Fed Chair Jerome Powell's speech in Jackson Hole.
As expectations for a Fed rate cut in September waned, increased profit-taking and expectations of a possible hawkish statement from Powell pushed Bitcoin below $113,000.
Major altcoins like Ethereum ($ETH), XRP, and Cardano (ADA) also experienced significant declines.
Speaking to The Block, Kronos Research CIO Vincent Liu said that Bitcoin is under pressure due to profit-taking and leveraged liquidations that followed Bitcoin reaching a new ATH earlier this month.
Liu stated that investors are currently moving away from risky assets and that he expects consolidation in the short term.
Stating that $4,200 is critical for Etheruem, the analyst added that if $ETH fails to hold this level, the price could fall as low as 3,900.
“Investors are in wait-and-see mode and the market may consolidate until policy clarity emerges.
“For Ethereum, $4,200 is seen as a key support level. While efforts to hold this level are ongoing, a breakout could pose a risk of a drop to $3,900.”
Peter Chung, head of research at Presto Research, also said the market is dependent on Powell.
Chung stated that a moderate trend from Powell could push the cryptocurrency market up, saying:
The most important near-term event will be Powell's speech in Jackson Hole this Friday. The market is already expecting a rate cut in September. If Powell says anything contrary to that, expect a sharp correction. However, if he takes a more moderate stance than expected, the market could recover.
*This is not investment advice.