Bitcoin experienced a sharp decline, falling to $US109,274 after previously reaching $US117,000, according to BTC Markets crypto analyst Rachael Lucas. This downturn is attributed to a combination of factors, including profit-taking, technical resistance, and evolving expectations regarding interest rates. The remarks made by Jerome Powell at Jackson Hole have dampened hopes for near-term policy easing, with the probability of a September rate cut decreasing from 90 per cent to 70 per cent.
Adding to the selling pressure, a major holder divested 24,000 BTC, valued at $US2.7 billion. This substantial sale triggered a cascade of liquidations across the cryptocurrency market. Ethereum also mirrored this trend, dropping from a record high of $US4956 to approximately $US4300. Resistance was encountered near the $US4800 level, and seasonal weakness further exacerbated the losses.
The cumulative liquidations in the crypto market surpassed $US900 million in a single trading session. Rachael Lucas notes that capital is currently shifting away from riskier assets. The market is now assessing whether this movement represents a temporary pause or the beginning of a more significant market correction. BTC Markets is a cryptocurrency exchange providing a platform for Australians to buy, sell, and trade digital assets. They offer access to a range of cryptocurrencies, including Bitcoin and Ethereum.
