Following a recent rally, Bitcoin’s price has retreated to the $113,000 range due to profit-taking and upcoming macroeconomic developments. Ethereum 
$2,315 mirrored Bitcoin’s downward movement, declining to approximately $4,100. According to CryptoAppsy data, Bitcoin 
$77,464 reached an intraday low of $112,709, while Ethereum saw its price fall to $4,070. Experts suggest that before the Jackson Hole event, prices might continue to move sideways, maintaining a compressed range.
Why Are Cryptocurrencies Falling?
The main factors contributing to the downward pressure in the cryptocurrency market are profit-taking after record peaks and the liquidation of leveraged positions. Data indicates that Bitcoin’s price decreased by 2.78%, dropping to $113,234 and testing an intraday low of $112,709. Ethereum faced even steeper declines, with a drop exceeding 5% bringing prices down to $4,070. Currently, short-term market appetite has waned, accompanied by fluctuating trading volumes.
Vincent Liu, CIO of Kronos Research, highlighted that profit-taking and leveraged liquidations are suppressing cryptocurrency prices. Liu noted that investors are in a wait-and-see mode, and the market may consolidate until there is clearer political direction. He pointed out that in Ethereum, the $4,200 level acts as a liquidity pivot. Prices above this level could attract buyers, while prices below might push the value down to $3,900.
The Market’s Focus on Key Events
During the consolidation phase, investors are concentrating on movements in ETFs and macroeconomic catalysts. After a record-breaking July, inflows into spot Bitcoin ETFs have slowed in August, with net outflows starting to appear. Similarly, spot Ethereum ETFs, after strong inflows during the first two weeks of August, have seen recent outflows. The direction of flows into ETFs is considered indicative of short-term market sentiment.
Today’s agenda includes the release of the July FOMC minutes and the anticipation of Fed Chairman Jerome Powell’s speech at Jackson Hole on Friday. Peter Chung, Research Director at Presto Research, mentioned that the market anticipates an interest rate cut in September. A contradiction from Powell could lead to a sharp correction, whereas a more dovish tone might spark a rally. Chung described the recent market volatility as a positioning move towards an uncertain outcome.
