The cryptocurrency market is experiencing significant price declines, particularly among the three largest digital assets: Bitcoin (BTC), Ethereum (ETH), and XRP.
Wholesale price data has also raised concerns about the potential for sustained high interest rates, while Treasury Secretary Scott Bessent confirmed that the US government does not plan to expand its Bitcoin reserves.
The analyst believes that the digital asset market now appears to be balancing optimism with caution, navigating both structural demand and speculative exposure.
Looking ahead, market analysts are closely watching upcoming statements from Federal Reserve (Fed) Chair Jerome Powell at the Jackson Hole Symposium.
While the medium-term outlook remains bullish, he anticipates a significant correction in September, warning that it could be a challenging month for the crypto market.
Profit advises that now is the time to prepare for potential short positions, as he expects prices to decline in the coming weeks, allowing traders to buy back at lower levels.
The expert also highlighted that the funding rates also appear healthy, suggesting that the market is not facing immediate selling pressure despite the recent Bitcoin and Ethereum price declines leading the current downturn.
As of this writing, Bitcoin trades at $115,630, registering a 6.5% gap from the recently achieved $124,000 record. Ethereum on the other hand, has been inching closer to its all-time high with the drop stopping at the $4,300 support.
Featured image from DALL-E, chart from TradingView.com
