Bitcoin maintains the price range of 112,000 - 120,000 USD, the market awaits Powell's speech

Bitcoin and Ethereum Prices Slightly Decrease, Liquidating Over $400 Million in Longing Positions, Market Cautious Before Jackson Hole Meeting.

The prolonged adjustment, with negative funding rates and a preference for selling options, indicates investor caution despite ongoing institutional demand. BTC price remains fluctuating in the 112,000-120,000 USD range before the Fed Chairman's speech.

How Do BTC and ETH Price Drops Affect the Cryptocurrency Market?

The decline of BTC from 118,000 USD to 115,000 USD and ETH from 4,500 USD to 4,300 USD led to the liquidation of over $400 million in Longing positions, according to QCP Capital's report. This continues the 5% adjustment trend from the previous week, with DeFi liquidations exceeding $1 billion, reflecting widespread profit-taking.

Market experience shows that large liquidations often drive more significant short-term volatility. Investors need to be cautious in risk management to minimize negative impacts.

Why Have Funding Rates Turned Negative and Selling Options Been Prioritized?

Funding rates turning negative, coupled with a market trend prioritizing selling options, indicate growing cautious sentiment and price decline expectations before the important Fed meeting at Jackson Hole. This signals investors want to protect their portfolios from unforeseen volatility.

Technical analysis and market behavior both indicate that large investors are increasing risk prevention activities, preparing for potential monetary policy fluctuations.

"Stronger-than-expected PPI data increased Fed policy uncertainty, keeping the cryptocurrency market oscillating in a narrow price range."
QCP Capital analyst, August 2023

What Role Does Institutional Demand Play in the Current Market?

Despite price adjustments and increased risks, institutional demand remains relatively stable. For instance, Metaplanet added 775 BTC over the weekend, demonstrating the long-term accumulation trend of professional investors.

BTC price is maintained in the 112,000-120,000 USD range, showing a balance between profit-taking pressure and institutional buying. The subsequent development will depend heavily on Fed Chairman Powell's speech at the Jackson Hole meeting.

How Will the Fed's Jackson Hole Meeting Affect Cryptocurrency Prices?

The Jackson Hole meeting is considered a crucial event that could guide short-term monetary policy. A "hawkish" or extremely "stable" statement could break the current price range, directly impacting BTC and ETH price volatility.

The market is awaiting a clear signal from Fed Chairman Powell to determine the next direction. Meanwhile, institutional accumulation could help stabilize the market before significant fluctuations.

Frequently Asked Questions

Do BTC and ETH Price Drops Indicate a Bear Market?

Price drops with large liquidations reflect profit-taking pressure and technical adjustments but do not necessarily mean the market has turned bearish when institutional demand remains strong.

Why Are Negative Funding Rates Important for Cryptocurrency Investors?

Negative funding rates indicate a market trend leaning towards selling positions and increasing risks, helping investors assess sentiment and manage risks.

Can Institutional Demand Help Cryptocurrency Prices Recover?

Large institutional purchases like BTC accumulation create important support, helping balance supply and demand and reduce price volatility.

How Does the Jackson Hole Meeting Affect the Cryptocurrency Market?

Jackson Hole can change U.S. monetary policy, directly impacting cash flow and investor sentiment in the cryptocurrency market.

What Should Be Done When the Market Shows Unstable Signals?

Investors should enhance risk management, stay updated with reliable news, and consider portfolio diversification to minimize negative impacts.