The decline in Bitcoin (BTC) and Altcoins, which began last week with declining expectations for US macro data and Fed interest rate cuts, continues in preparation for the market’s Hawkish stance from the Fed.
As Bitcoin approaches its six-week low, investors are awaiting minutes of the Fed’s July meeting.
Bitcoin fell below $113,000 due to the gains and increased expectations of Hawkish’s potential statement from Powell as expectations for a Fed rate cut waned in September.
Major Altcoins such as Ethereum (Eth), XRP, and Cardano (ADA) also experienced significant reductions.
Talking to Block, Kronos Research Cio Vincent Liu said Bitcoin is under pressure from liquidating profits and utilization following Bitcoin, which reached its new ATH earlier this month.
Liu said investors are currently separated from dangerous assets and are looking forward to consolidation in the short term.
Speaking to Etheruem’s $4,200, analysts added that if ETH cannot hold this level, the price could fall by 3,900.
“Investors are in a standby mode and markets can be integrated until policy clarity appears.
“For Ethereum, $4,200 is considered a major support level. While efforts to maintain this level are ongoing, breakouts could pose a risk of dropping to $3,900.”
Peter Chung, director of research at Presto Research, also said the market relies on Powell.
Chung said that moderate trends from Powell have boosted the cryptocurrency market:
The most important short-term event was Powell’s speech at Jackson Hole this Friday. The market is already hoping to cut interest rates in September. If Powell says anything against it, expect a sharp fix. However, if he takes a milder stance than expected, the market could recover.
*This is not investment advice.
