Bitcoin and Ether are experiencing notable shifts, with both cryptocurrencies showing signs of market consolidation. As traders react to the recent price movements, the market is poised for potential changes depending on upcoming macroeconomic developments.
According to data from The Block’s crypto price page, Bitcoin has dropped by 2.78%, reaching $113,234. Earlier in the day, it traded as low as $112,709. Meanwhile, Ether has seen a 5.44% decline, hitting $4,108 as of 9:00 p.m. on Tuesday.
Profit-Taking and Liquidations Impact Bitcoin
Kronos Research CIO Vincent Liu highlights that Bitcoin‘s price has been under pressure due to profit-taking and leveraged liquidations following its all-time high earlier this month. Traders are currently in a wait-and-see mode, anticipating policy clarity which could influence market directions.
Ether’s Liquidity Pivot
For Ether, Liu sees $4,200 as a critical liquidity pivot. “Holding this level could attract bids, while a break might lead flows towards $3,900,” he noted. This highlights the importance of closely monitoring Ether’s price movements in the coming days.
With the market showing signs of consolidation, traders are keeping a close watch on exchange-traded funds and macroeconomic catalysts. After an impressive performance in July, spot Bitcoin ETFs have experienced a slowdown, with some reporting net outflows this month. Similarly, Ether ETFs, which enjoyed strong inflows in the first half of August, are now seeing outflows.
Focus on Federal Reserve Insights
Traders are also eagerly awaiting the release of the Federal Open Market Committee meeting minutes from July and Federal Reserve Chair Jerome Powell’s speech at Jackson Hole scheduled for Friday. Peter Chung, head of research at Presto Research, emphasized the significance of Powell’s upcoming speech.
“The most important event in the near term is Powell’s Jackson Hole speech this Friday,” Chung stated. “The market is already expecting a rate cut in September. If he states otherwise, expect a sharp correction. However, if he adopts a more dovish tone, the market could rally.”
Chung explained the recent market movements as a result of investors positioning themselves for the consequences of Powell’s speech, which remains uncertain.
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