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Bitcoin, XRP, ETH’s Pullback: Key Factors Behind The Recent Drop

The cryptocurrency market is experiencing significant price declines, particularly among the three largest digital assets: Bitcoin (BTC), Ethereum (ETH), and XRP. 

Following record-breaking rallies in the previous week, these cryptocurrencies have seen notable losses, with Ethereum down 5.2%, XRP dropping 3.8%, and Solana (SOL) slipping 6%. Even memecoin Dogecoin (DOGE) has not been spared, losing 5.2% of its value.

Crypto Market Faces New Downturn

According to a recent report by Barron’s, the recent downturn can be attributed to a combination of macroeconomic factors that have dampened investor optimism. 

Wholesale price data has also raised concerns about the potential for sustained high interest rates, while Treasury Secretary Scott Bessent confirmed that the US government does not plan to expand its Bitcoin reserves. 

Antonio Di Giacomo, analyst at XS, emphasized the impact of macroeconomic indicators on cryptocurrency prices. He pointed out that Bitcoin’s pullback after reaching an all-time high illustrates the volatility that can accompany such rapid price movements, even as institutional adoption of cryptocurrencies continues to rise. 

The analyst believes that the digital asset market now appears to be balancing optimism with caution, navigating both structural demand and speculative exposure.

Looking ahead, market analysts are closely watching upcoming statements from Federal Reserve (Fed) Chair Jerome Powell at the Jackson Hole Symposium. 

Any hints of hawkishness or delays in rate-cut expectations could further pressure risk assets, including cryptocurrencies. Conversely, dovish signals may help sustain the current momentum in the market.

September Challenges For Bitcoin

In a recent social media ポスト on X (formerly Twitter), market expert Doctor Profit has shared insights regarding the next price trajectory for Bitcoin. He forecasts a sideways movement within a narrow range of approximately 8% leading into September. 

While the medium-term outlook remains bullish, he anticipates a significant correction in September, warning that it could be a challenging month for the crypto market. 

Profit advises that now is the time to prepare for potential short positions, as he expects prices to decline in the coming weeks, allowing traders to buy back at lower levels.

Despite the current pullback, on-chain data reveals continued accumulation by larger wallets, indicating that major investors remain optimistic about the long-term potential of cryptocurrencies. 

The expert also highlighted that the funding rates also appear healthy, suggesting that the market is not facing immediate selling pressure despite the recent Bitcoin and Ethereum price declines leading the current downturn. 

ビットコイン

As of this writing, Bitcoin trades at $115,630, registering a 6.5% gap from the recently achieved $124,000 record. Ethereum on the other hand, has been inching closer to its all-time high with the drop stopping at the $4,300 support. 

Featured image from DALL-E, chart from TradingView.com 


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