Bitcoin, XRP, ETH Decline: Key Factors Behind the Recent Drop

The cryptocurrency market is witnessing a significant price fall, especially for the three largest digital assets: Bitcoin, Ethereum, and XRP. After record bullish trends last week, these cryptocurrencies have seen a notable decline, with Ethereum falling by 5.2%, XRP by 3.8%, and Solana by 6%. Even the memecoin Dogecoin has not escaped the bearish trend, losing 5.2% of its value. The Cryptocurrency Market Faces a New Downturn According to a recent report from Barron's, the recent downturn may be due to a combination of several macroeconomic factors that have dampened investor optimism. Wholesale price data has also raised concerns about the potential for high interest rates to persist, while Treasury Secretary Scott Bessent confirmed that the U.S. government has no plans to expand its Bitcoin reserves. Antonio Di Giacomo, an 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 indicates that volatility can accompany such rapid price movements, even as institutional adoption of cryptocurrencies continues to increase. Analysts believe that the current digital asset market seems to be balancing between optimism and caution, navigating both structural demand and speculative risk. Looking ahead, market analysts are closely monitoring the upcoming statements from Federal Reserve Chairman (Fed) Jerome Powell at the Jackson Hole symposium. Any signs of a hardline stance or delays in rate cut expectations could put pressure on risk assets, including cryptocurrencies. Conversely, dovish signals may help sustain the current growth momentum in the market. The Challenges of Bitcoin in September In a recent post on social media X (formerly known as Twitter), market expert Doctor Profit shared insights on the next price trajectory of Bitcoin. He predicts that the price will move sideways within a narrow range of about 8% until September.

Although the medium-term outlook remains optimistic, he predicts there will be a significant adjustment in September, warning that this could be a challenging month for the cryptocurrency market. Despite the current pullback, on-chain data shows that large wallets continue to accumulate, indicating that major investors remain optimistic about the long-term potential of cryptocurrency. The expert also emphasized that the funding rate appears to be healthy, indicating that the market is not facing immediate selling pressure despite the recent fall in the prices of Bitcoin and Ethereum, which has led to the current downturn.

As of the time of writing this article, Bitcoin is trading at 115,630 dollars, down 6.5% from the recent record high of 124,000 dollars. On the other hand, Ethereum is gradually approaching its all-time high with the decline stopping at the support level of 4,300 dollars.