At the start of the week, Bitcoin’s price fell below $108,000, reaching its lowest level since early July. Ethereum 
$2,266, XRP, and Solana 
$83 also experienced declines during this period. This market downturn attracted attention due to the latest inflation data released in the United States and the anticipation of the upcoming Federal Open Market Committee (FOMC) meeting.
Reasons Behind the Decline in Cryptocurrency Prices
According to data from CoinMarketCap, Bitcoin 
$76,467 began the new week with a 0.71% drop, trading at $107,897 at the time of reporting. Similarly, Ethereum fell by 1% to $4,398, XRP dropped 3.67% to $2.73, and Solana decreased by 2.71% to $198.6.
Presto Research analyst Min Jung linked the ongoing weekend decline to Personal Consumption Expenditure (PCE) data announced in the U.S. In July, core inflation increased annually by 2.9%, reaching the highest level since February, according to CNBC reports.
Vincent Liu, Chief Investment Officer at Kronos Research, explained that large-scale Bitcoin sales in recent days have led to liquidations in leveraged positions. Liu noted that $100,000 is a significant support level for Bitcoin, while $4,000 is crucial for Ethereum. Breaking these levels could lead to a broader liquidity contraction.
Focus on Employment Data and FOMC Schedule
Investors are closely watching the upcoming Non-Farm Payrolls (NFP) data release this week. Liu suggested that strong employment data might reduce risk appetite, whereas weak data could potentially increase demand. A major surprise in U.S. employment figures could trigger significant movements in the cryptocurrency market.
Additionally, the FOMC meeting is scheduled for September 16-17. The Federal Reserve’s interest rate decision is crucial for market direction. According to the CME Group’s FedWatch Tool, there is an 87.6% probability of a 25-basis-point rate cut.
