On the first day of August, the cryptocurrency market welcomed a 'good start': Bitcoin plummeted to $114,000, Ethereum fell sharply to around $3,600, and altcoins experienced significant drops.
After reaching around $119,000 last night, Bitcoin plunged to $114,300 in the early morning, retracting about 4,400 points.
Reasons for the sharp decline include:
The drop in U.S. stocks impacting the cryptocurrency market, the U.S. tariff war causing market panic, a net outflow of $114.69 million from Bitcoin spot ETFs yesterday, hawkish comments from Federal Reserve Chairman Powell cooling rate cut expectations, and PCE data exceeding expectations serving as the direct trigger.
After a unilateral rise, Ethereum is under pressure to adjust, with a key focus on the $3,600 round number. If it holds, one can consider short-term buying between $3,636 and $3,606; if it breaks and is a false break, one can enter around $3,588/$3,572, with $3,508 for additional purchases and $3,500 for reducing positions as a defensive measure.
On the eve of September, Ethereum is expected to return to around $2,800, stay tuned.