The overall demand for Bitcoin has decreased,
will the support at $110k be able to hold against macro pressures?
From over 170k BTC in early August, appetite has dropped more than three times to 50k BTC at the time of publication. However, analysts also warned of additional macro headwinds in the short term.
Expectations for possible Fed rate cuts in September will come under renewed scrutiny ahead of Federal Reserve Chairman Jerome Powell's speech on August 22 at the Jackson Hole Symposium.
For his part, Wall Street analyst Tom Lee projected that Powell will likely take an aggressive stance, but the markets will rally afterward.
At the same time, potential dollar liquidity drain could also derail BTC bulls in the coming weeks.
The U.S. Treasury is likely to borrow more money (around $400B) from the markets, which could sour sentiment for BTC and Crypto in the short term.
