Crypto markets are starting the week under pressure after a strong early-August rally gave way to inflation concerns. Bitcoin is trading at $115,500, down about 2% on the morning. Ethereum slid below $4,300, losing 4.5% and erasing last week’s gains, while XRP has dropped under $3 for the first time in two weeks, falling 4.5% today and nearly 9% compared to last Monday.
From Highs to Hesitation
The recent run-up had been impressive – Bitcoin and BNB both hit fresh all-time highs last week, while Ethereum nearly touched $4,800. But Thursday’s hotter-than-expected Producer Price Index changed the tone, sparking fears that the Federal Reserve may have less room to cut rates in the months ahead.
That data hit across markets. Stocks slipped from record levels, and crypto followed, with investors showing less appetite for risk until the Fed’s path becomes clearer.
Red Start, Modest Green Spots
Most of the top coins are in the red this morning. Solana, BNB, and Dogecoin are all trading lower alongside BTC, ETH, and XRP. Losses are relatively contained – there aren’t major collapses – but the overall tone is cautious.
The only double-digit declines in the top 100 come from OKB and Mantle, both of which had surged sharply in the previous week and are now cooling off. On the other side, Arbitrum and Monero are among the few gainers, though their moves are small compared to the broader pullback.
Read also: OKB’s Wild Ride: From $46 to Nearly $140 in Minutes
Macro Clouds Ahead
This week brings a mix of economic and policy signals that could steer markets further. The biggest event is Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday, which may be his last as Fed chair. Traders are hoping for clarity on whether September still brings a rate cut. At the moment, markets see about an 85% chance of at least a quarter-point reduction.
Before that, investors will also get Fed meeting minutes midweek and fresh jobless claims data Thursday. With the PPI surprising to the upside, every new figure will be scrutinized for hints on whether inflation risks outweigh slowing growth.
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Final Thoughts
After weeks of setting records, crypto is starting this Monday on the back foot. The correction hasn’t turned into a rout – there’s no wave of forced selling – but the mood has shifted to wait-and-see. With Powell’s Jackson Hole speech looming, traders are watching closely to see if the Fed can deliver the dovish signals needed to reignite risk appetite.
