Bitcoin Dips Below $108,000 Amid Market Signals

Bitcoin, Ether, and other major cryptocurrencies saw declines over the weekend as traders analyzed macroeconomic data in anticipation of the Federal Open Market Committee (FOMC) meeting later this month. According to The Block's crypto price page, Bitcoin dropped 0.71% to $107,866 by 1:50 a.m. on Monday, marking its lowest price range since early July. Ether fell by 1% to $4,398, XRP decreased by 3.67% to $2.73, and Solana declined by 2.71% to $198.6. "The crypto market extended its decline over the weekend following the PCE data release, as persistently high inflation has raised doubts regarding a possible rate cut in September," stated Min Jung, research analyst at Presto Research. Last Friday's Personal Consumption Expenditures report indicated a 2.9% increase in core inflation for July. While this figure was in line with expectations, it was the highest annual rate recorded since February, according to CNBC. This inflation report exacerbated bearish sentiment in the market, which had already been impacted by significant sell-offs from Bitcoin whales, causing liquidations of leveraged positions, explained Kronos Research CIO Vincent Liu to The Block. "Bitcoin's critical psychological support stands at $100K. With leveraged positions under pressure, liquidity remains fragile," Liu commented, adding that Ether's key support is at $4,000. "If these levels break, we might witness a deeper drop and a broader liquidity crisis, though a complete bear market would necessitate a more sustained downturn." **NFP and FOMC** Traders are now pivoting their focus to this week’s non-farm payrolls (NFP) report, which could indicate the Federal Reserve's next steps based on the latest U.S. employment figures. "A surprising surge in job growth could lead to significant market movements—strong numbers might dampen crypto demand as risk appetites decrease, while unexpected weaker data could raise demand," Liu noted. The FOMC meeting is slated for September 16 and 17, where the anticipated decision regarding U.S. central bank interest rates will be unveiled. Despite recent PCE data suggesting persistent inflation, the CME Group's FedWatch Tool still indicates an 87.6% likelihood of a 25 basis point rate cut at the upcoming meeting. *Disclaimer: The Block is an independent media outlet delivering news, research, and data. As of November 2023, Foresight Ventures is the majority investor in The Block, which operates independently to provide objective and timely information about the crypto industry.*