Bitcoin Pulls Back with Altcoins; Cardano and Dogecoin Lag
Bitcoin and major altcoins retreated on Wednesday as traders booked profits amid rising macroeconomic pressures. Bitcoin slipped below its 50-day moving average to $113,500, fueling concerns of a deeper correction toward the $100,000 mark near its 200-day MA. Ether fell 1.8% to around $4,159, retesting key $4,100 support. XRP and Dogecoin also slid, while Cardano’s ADA led losses with a 6.6% drop.
The pullback followed hotter-than-expected US inflation data, which dampened expectations for Federal Reserve rate cuts and pressured the broader crypto market. Leverage reached record highs in futures, amplifying volatility and raising the risk of sharper moves if sentiment shifts further.
Despite the near-term downturn, institutional flows into Ethereum products and growing allocations to digital assets suggest resilient long-term interest. Traders now eye the Fed Chair’s Jackson Hole address for clues on monetary policy, with any hawkish signals likely to reverberate across the crypto market.
Bearish
The recent retreat of Bitcoin and major altcoins indicates a bearish market sentiment in the short term. Bitcoin’s breach of its 50-day moving average and the potential slide toward $100,000 underscores technical weakness, while elevated futures open interest raises the risk of sharp unwinds. Similar patterns emerged in late 2023, when hotter-than-expected US inflation data triggered profit-taking and erased gains across the crypto market. High leverage historically exacerbates pullbacks, as leveraged positions get liquidated in volatile conditions. Although robust institutional flows into Ethereum products hint at sustained long-term interest, these inflows have yet to offset immediate downside pressures. With the Fed’s policy outlook hanging on the upcoming Jackson Hole speech, traders face heightened uncertainty. Overall, bearish momentum is likely to persist until clearer signs of easing macro headwinds and stable trendline support emerge.