Bitcoin Pullback After Record Highs
Bitcoinโs rally has cooled as the market faces profit-taking and Federal Reserve uncertainty. After hitting a record above 124,000 dollar earlier this month, BTC has dropped nearly 7.5% to around $115,000. This correction reflects broader weakness across the crypto market.
Massive Liquidations Rock the Market
Over 1 billion in leveraged positions have been liquidated in recent days, with $270 million erased in a single session. The majority came from long trades, showing traders were overly bullish. Ethereum saw $170 million liquidated, while Bitcoin accounted for $104 million. Analysts say this is more of a short-term reset than a long-term trend shift.
Profit-Taking Pressure Builds
With Bitcoinโs Market Value to Realized Value (MVRV) ratio at 21%, most holders are sitting on strong profits. This creates natural selling pressure as investors lock in gains. Technical data also shows BTC is oversold, hinting at consolidation before the next move.
Fed Policy Adds Uncertainty
The biggest unknown remains U.S. monetary policy. Expectations for aggressive rate cuts have cooled, with odds of no cut in September climbing. This weighs on crypto, as lower rates usually boost risk assets. All eyes now turn to Jerome Powellโs Jackson Hole speech for direction.
