Bitcoin retreats to $113,000 and Ether to $4,100, marking a consolidation after the July euphoria and awaiting Jerome Powell’s speech in Jackson Hole.
The Crypto Market Hits the Pause Button After Euphoria
The euphoric surge of July has dissipated. Bitcoin slides to $113,000, after flirting with a historic high earlier this month. Meanwhile, Ether retreats to $4,100, highlighting the market’s hypersensitivity to macroeconomic signals.
The figures may seem modest compared to the recent surge in prices, but they reflect a clear trend: traders are lightening their positions and moving into wait-and-see mode. The goal? Anticipate the monetary revelry in Jackson Hole, where Jerome Powell, the Fed’s chairman, could shake things up.
The Crypto Market Cools Off After Euphoria
Profit-taking is increasing, and leveraged liquidations are accentuating the correction. Nothing unusual after a rally, but the timing with upcoming macro events makes the atmosphere heavier. According to Vincent Liu, CIO at Kronos Research, ‘traders are watching and waiting for a clear policy signal.’ For him, $4,200 is a key level for ETH: above it, appetite may return, below it, the risk is a drop to $3,900.
ETFs Losing Momentum
The momentum of spot ETFs, a key driver of the summer rally, is faltering. After record inflows in July, Bitcoin-backed products now see net outflows. A similar scenario unfolds for Ethereum: after a strong start to the month, the flows reverse. This pause raises questions: does the market simply need to catch its breath, or are we witnessing a more lasting slowdown? For now, investors are attentively monitoring volumes.
It All Depends on Jackson Hole
The meeting is set for Friday. Powell will speak, and the market will decide. The anticipation is immense: a ‘dovish’ tone would confirm hopes for a rate cut as early as September, while an unexpectedly firm stance could trigger a sharp correction. The situation is simple: if Powell disappoints, the fall could be swift. But if he exceeds expectations in easing, a new rally could start.
A Deceptive Calm
On the surface, the current consolidation appears to be a breather after the excess. But with Bitcoin still above $110,000 and ETH firmly above $4,000, the floors remain high. A sign that, despite the nervousness, underlying confidence is intact. The next shakeup will come from Wyoming. Until then, the crypto market holds its breath and fine-tunes its positions.
