With a substantial decline from its January 2025 record of $109,590, Bitcoin (BTC) has fallen below the $110,000 barrier, increasing its decline to more than 13% from its peak of $123,640. Although this decline is technically substantial, historical trends and market seasonality indicate that the present phase may be coming to a conclusion, with a possible cyclical floor of $93,000 to $95,000 forming.
Altcoins are encountering difficulties, mirroring a wider risk-averse attitude in the market. While other cryptocurrencies like XRP, ADA, and DOGE saw double-digit losses, Ethereum (ETH) fell 14% after momentarily hitting fresh all-time highs. Despite these challenges, institutional interest stays robust, as ETH treasuries and corporate purchasers keep increasing their assets. Mid-cap cryptocurrencies like CRO and PUMP have seen impressive performance thanks to narrative-driven rallies, although this has resulted in weaker assets suffering rather than attracting new capital inflows. The economic landscape in the United States shows a varied outlook as policymakers gear up for the Federal Reserve’s September meeting. In July, consumer spending saw a rise of 0.5%, marking the most robust growth in four months.
However, inflationary pressures continue to be significant, as core PCE increased by 2.9% compared to the previous year. At the same time, the pace of job creation has decelerated, which could reduce the bar for policy adjustments and shift anticipations towards a rate cut in September. Moreover, the second-quarter GDP growth was adjusted upwards to 3.3%, fueled by robust investment in intellectual property and equipment. To improve liquidity and lessen market fragmentation, the Commodity Futures Trading Commission, enabling overseas exchanges to rejoin the US market within predetermined guidelines. The use of digital assets by businesses is also growing.
In order to reduce security concerns, El Salvador is spreading its $682 million reserve over several wallets as part of its ongoing sovereign Bitcoin strategy on the global stage. The nation has rolled out a public dashboard aimed at enhancing transparency and establishing itself as a standard for state-level crypto governance.