Crypto Market Cools After Record Highs as Macro Pressures Resurface
The crypto market is facing renewed pressure as traders take profits and macroeconomic concerns reemerge, reversing a streak of record-setting gains.
Bitcoin (BTC) slid over 1.5% to $113,500 in the past 24 hours, retreating from its all-time high and breaking below key technical levels. The move has raised concerns of a deeper pullback, potentially toward the $100,000 zone, which aligns with the 200-day moving average.
“BTC has fallen below its 50-day moving average, a key trendline that supported its recent rally,” said FxPro’s chief market analyst, Alex Kuptsikevich. “This signals fragility in the current market structure and opens the door for a broader correction.”
Total crypto market capitalization declined 0.4% to $3.87 trillion, and analysts now warn of a possible slide toward $3.6 trillion if current momentum continues to fade.
Ethereum (ETH) dropped 1.8% to $4,159, down more than 12% from recent highs. ETH is retesting the $4,100 support level, which acted as strong resistance earlier this year. Major altcoins also lost ground, with XRP falling 4.1% to $2.89, Dogecoin (DOGE) down 2.4% to $0.218, and Cardano (ADA) leading losses with a 6.6% drop.
Hot Inflation Print Dampens Sentiment
Market optimism has cooled quickly following hotter-than-expected U.S. inflation data, which has reduced expectations for imminent Federal Reserve rate cuts. This macro shift has prompted profit-taking, particularly among leveraged positions.
“Bitcoin remains in a minor correction phase after its latest record high,” said Joel Kruger, market strategist at LMAX Group. “Rising inflation is pushing back expectations for Fed easing, and that’s weighing on risk sentiment across the board.”
Leverage Adds to Market Risk
According to Bitget chief analyst Ryan Lee, leverage is now a major factor driving volatility in both BTC and ETH.
“Record futures open interest highlights how much leverage has built up,” Lee said. “That can drive sharp moves in either direction depending on sentiment.”
Fed Chair Powell’s Speech in Focus
Markets now turn their attention to Jackson Hole, where Fed Chair Jerome Powell is expected to give fresh signals on monetary policy. With equities, crypto, and forex markets all on edge, the speech could set the tone for risk assets heading into the fall.
Despite the pullback, institutional interest in ETH remains solid, with ETF inflows and treasury allocations continuing to grow. While the near-term outlook is shaky, many traders maintain a constructive view on crypto’s broader trajectory.
