The cryptocurrency market experienced a significant downturn today, with major assets facing notable declines:

Bitcoin (BTC): Trading at $113,555, down 2.72% from the previous close.

Ethereum (ETH): At $4,179.24, reflecting a 4.33% decrease.

Solana (SOL): Priced at $177.76, down 3.51%.

Dogecoin (DOGE): Valued at $0.2142, a 4.61% drop.

XRP (XRP): Currently at $2.93, declining by 3.93%.

This market-wide sell-off has led to a $75 billion reduction in total market capitalization, bringing it down to $3.86 trillion.

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๐Ÿ” Key Factors Driving the Decline

1. Federal Reserve's Hawkish Stance: Investors are anticipating a potentially aggressive policy shift during Federal Reserve Chair Jerome Powell's upcoming Jackson Hole speech. This uncertainty has led to risk-off behavior in the markets.

2. Unexpected Inflation Data: The U.S. Producer Price Index (PPI) for July surged by 0.9%, significantly exceeding the anticipated 0.2%. This unexpected rise in inflation has heightened concerns about the economic outlook.

3. Widespread Liquidations: Approximately $961 million in leveraged positions were liquidated across the crypto market, exacerbating the downward pressure on prices.

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๐Ÿ”ฎ Looking Ahead: What Traders Should Watch

Support Levels: Bitcoin is testing the $112,000 support zone, while Ethereum's key level is around $4,000. A breach below these levels could signal further declines.

Upcoming Economic Events: The Jackson Hole symposium later this week could provide critical insights into the Federal Reserve's policy direction, influencing market sentiment.

Market Sentiment: Despite today's downturn, some analysts view this as a healthy correction within an ongoing bullish trend, especially considering the post-halving dynamics of Bitcoin.