Bitcoin Drops to $113,000; Ether at $4,100

Bitcoin and ether have experienced declines as traders take profits following a recent market rally and gear up for upcoming macroeconomic events. As of Tuesday evening, bitcoin is down by 2.78% at $113,234, having dipped to as low as $112,709 during the day. Ether traded lower by 5.44%, settling at $4,108. According to Vincent, CIO of Kronos Research, bitcoin's current price is pressured by profit-taking and leveraged liquidations after reaching an all-time high earlier this month. 'Traders are in a wait-and-see mode, and the market may consolidate until policy clarity emerges,' he noted. For ether, Liu considers $4,200 a key liquidity point, indicating that holding this level may attract buyers, while a break below could lead to declines towards $3,900. Currently, traders are observing exchange-traded funds and macroeconomic factors amid this market consolidation. Following a record July, spot Bitcoin ETFs have seen slowed inflows and some net outflows this month. While ether ETFs enjoyed strong inflows in early August, they have also begun to show outflows recently. Attention is now on the upcoming release of minutes from the Federal Open Market Committee meeting and Jerome Powell's anticipated speech at Jackson Hole on Friday. Peter Chung, head of research at Presto Research, emphasized the importance of Powell's address, stating, 'The market expects a rate cut in September. If he contradicts this, expect a sharp correction. If he is more dovish than anticipated, the market could rally.' Chung suggested that recent market movements reflect investors positioning for this pivotal event, which remains uncertain.