Bitcoin remains steady above $112K as traders await U.S. Federal Reserve Chair Jerome Powell’s upcoming speech, which could provide crucial insights into future monetary policy. The anticipation has created a sense of caution in the market, with many investors closely monitoring Powell’s statements for any signs of interest rate adjustments or economic forecasts.
Meanwhile, Ethereum is holding near $4,300 but shows slight volatility, while XRP is struggling to maintain upward momentum. Solana, on the other hand, has seen a minor uptick, gaining traction after recent network updates. With mixed signals across the board, traders remain divided on whether the crypto market will rally or face a pullback in the coming days.
Bitcoin Tests Key Support While Ethereum Fights to Gain Momentum
The crypto market saw little movement, dipping slightly by 1% to $3.83 trillion—a minor drop rather than a recovery. Over the past 24 hours, nearly 78,000 traders faced liquidations totaling $222.5 million, with the largest single loss of $2.94 million occurring on Binance. This has added further weakness to the market, although Bitcoin remains above its previous consolidation highs. However, a drop below $112K could increase bearish pressure.
Analyst Benjamin Cowen highlights that Bitcoin may be approaching a cycle top. He notes we are around day 1,016 of Bitcoin’s current cycle, and historically, similar cycles peaked around day 1,060. This suggests the potential for a cycle top between October and December.
On the other hand, Ethereum (ETH) is struggling to gain momentum, trading sideways following recent volatility. Ether ETFs have recorded over $900 million in outflows this week. Additionally, on-chain data reveals a 28% drop in active ETH addresses since late July, suggesting weaker retail participation.
Many analysts believe this decline in retail interest could limit short-term gains, even if Bitcoin stabilizes. From a technical perspective, ETH is approaching a potential breakout. If it clears the $4,300 resistance, it could pave the way for a rapid move toward $5,000.
All Eyes On Jerome Powell Speech
Bitcoin has maintained its position above $112K, demonstrating resilience despite ongoing pressure from uncertain macroeconomic conditions. Investors are now closely watching Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole symposium, as it could provide critical insights into the Fed’s future monetary policy.
Powell’s remarks are expected to influence risk assets like cryptocurrencies, which have shown sensitivity to interest rate decisions in the past. If the Fed signals a slower or more cautious approach to cutting interest rates, Bitcoin and other risk assets could encounter short-term resistance, as higher rates often discourage risk-on investments.
Also Read: Coinbase CEO Brian Armstrong Predicts Bitcoin Could Soar to $1 Million by 2030
Disclaimer
The information in this article should not be considered financial advice, and the OvenAdd platform is intended only to provide educational and general information. Please conduct your own research and consult a financial advisor before making any investment choices.
