Crypto selloff deepens

A mood shift follows a run of record highs as macro data and policy signals loom over crypto assets.

Crypto Selloff Deepens as Bitcoin Dips Toward 100K

Bitcoin fell back to 113,500 after a 1.5% daily drop, slipping below the 50-day moving average. Ether declined to 4,159, down more than 12% from its recent peak, and ADA led losses among major tokens with a 6.6% drop.

Inflation data surprised to the upside, cooling expectations for rapid rate cuts and prompting profit-taking across short-term accounts. Open interest in crypto futures remains high, signaling that leverage could amplify moves even as institutional flows into ETH products stay robust. Traders are watching Jackson Hole, where the Fed chair will outline the policy stance shaping markets into the fall.

The pullback underscores how quickly a market fueled by momentum can turn cautious when macro signals harden. High leverage in derivatives means recent gains can unwind fast, creating a risk of sharper moves if sentiment shifts. Yet the endurance of institutional flows into ETH suggests some belief in a longer-term narrative, which could cushion a deeper selloff for now.

Policy signals from the Fed at Jackson Hole will likely set the tone for weeks of price action. If the central bank hints at slower tightening or a clear inflation path, risk assets could stabilize; if not, volatility may rise as traders reassess risk appetite and hedges across markets.

Highlights

Markets stay sensitive to policy cues as participants gauge how much the current pullback reflects a temporary wobble or a new trend.