After days of vibrant highs, the crypto market once again proves its nature of 'severe ups and downs'. Leading digital currencies such as Bitcoin, Ethereum, XRP, and even Solana or Dogecoin have all entered a strong correction phase, blowing away most of the excitement that had just sparked.
In just one day, Ethereum lost 5.2%, XRP dropped 3.8%, Solana evaporated 6%, and Dogecoin also fell 5.2%. Even the 'giant' Bitcoin could not escape the sell-off wave, dropping to $115,000, down 7.3% from the recent historical peak of $124,000.
The Macro Cloud Shadows the Market
According to Barron’s, the current decline is not a random event. The global financial market is facing pressure from a series of newly released economic data, notably a surge in wholesale price indices, raising concerns that high interest rates will last longer than expected. This is the direct factor choking the flow of money into risk assets like cryptocurrencies.
Not stopping there, the statement from U.S. Treasury Secretary Scott Bessent - that the U.S. government has no plans to expand Bitcoin reserves - is like a cold shower dousing the already fragile psychology of investors.
Mr. Antonio Di Giacomo, an analyst at XS, emphasizes:
"Bitcoin has proven its strength by reaching historical highs, but the subsequent retreat shows that this market is inherently tied to severe fluctuations. Currently, investors are being stretched between two extremes: confidence in long-term widespread acceptance and short-term concerns about a highly unstable macroeconomic context."
Focus: Jackson Hole and the 'Life and Death Signal' from the Fed
In the coming week, the Jackson Hole Conference will become the focus of global financial attention, as all eyes are on U.S. Federal Reserve Chairman Jerome Powell. Just one of his speeches is enough to shape market rhythms and decide short-term capital flows.
If Powell maintains a 'hawkish' stance, emphasizing the need to maintain high interest rates and delaying plans for cuts, the crypto market may have to endure a new wave of sell-offs as investors flee from risk assets.
Conversely, a 'dovish' signal - meaning soft and leaning towards loosening - would act as a strong psychological boost, encouraging risk capital to return to Bitcoin and altcoins, rekindling confidence in the recovery.
In other words, Jackson Hole is not just an annual conference, but the 'life and death scale' for the psychology of millions of global investors - where every word from Powell could ignite a new wave of increases or plunge the market deeper into the vortex of correction.
"The 'Earthquake' is Awaiting"
On social media, market expert Doctor Profit has issued a notable warning:
In the short term, Bitcoin is likely to move sideways within a narrow range of about 8% until the end of August, reflecting investor caution after the recent hot increase.
However, stepping into September, the market may face a strong 'earthquake' correction before finding a new balance.
According to him, this is the time when traders need to prepare a clear mindset and a reasonable defensive strategy. Establishing short positions could become an important tool to take advantage of short-term downward waves.
At first glance, this forecast has a pessimistic tone, but in reality, in the financial world, every correction holds hidden opportunities. Those who are patient and disciplined will see it as a 'buying' time at good prices, laying the groundwork for significant profits when the market enters the next growth cycle.
Whales Quietly Accumulate: Long-Term Confidence Unchanged
On-chain data is revealing an interesting picture: while the majority panic and sell off during the correction, whales - wallets holding large amounts of BTC and ETH - are quietly increasing their accumulation.
This move conveys an important message: long-term confidence in cryptocurrency remains intact, despite severe short-term fluctuations. Large investors seem to view the current drop not as a risk, but as an opportunity to accumulate at attractive price levels.
Meanwhile, the funding rate in the derivatives market remains stable. This indicates that the market has not fallen into a tense situation, and the fear of a large-scale sell-off is not present.
From a technical perspective, Ethereum still holds a strong support zone around $4,300, while XRP and Solana are also striving to seek balance. This is a sign that, although the overall market is correcting, key coins still have a solid foundation to recover.
In other words, whales are sending a clear signal: the short-term market may fluctuate, but the long-term outlook is still a game worth betting on.
Three Scenarios for the Market in September
Entering September - a period known as the 'fire test month' of the crypto market - three major scenarios are particularly being focused on by analysts:
Negative scenario (30%): If the Fed signals a hard stance, maintaining high interest rates for longer, Bitcoin could drop below $110,000, triggering a massive sell-off wave. The market will enter a defensive state, where fear outweighs expectations.
Neutral scenario (40%): If Chairman Powell maintains an ambiguous tone, the market will continue to move sideways within a narrow range, reflecting waiting and hesitation. This could be a 'spring compression' phase, preparing for a breakout when a clear catalyst emerges.
Positive scenario (30%): If the Fed sends a dovish signal, supporting liquidity and opening the door to interest rate cuts, Bitcoin could bounce back to $120,000, while also creating momentum for Ethereum to approach a new historical peak. Optimism will return, rekindling risk capital flows.
The crypto market has never been a bed of roses. Explosive price increases always come with severe corrections, causing many faint-hearted investors to be pulled out of the game. But looking back at history, we see: each retreat opens up opportunities for those who are patient and confident.
The important thing now is not just to stare at the red numbers on the price board, but to maintain a long-term perspective. Financial institutions, whale wallets, and smart money are still betting on the future of blockchain and crypto - that is the real picture worth following.
In summary, September can be harsh, but for bold investors, this will not be the end, but rather the 'gold accumulation season' - a preparation step for the next explosive cycle.
