Crypto Slides as Markets Brace for Fed Tone
Bitcoin fell below $114,000, slipping roughly 9% from its recent peak, while Ethereum dropped to about $4,200. The decline reflects rising caution ahead of Federal Reserve Chair Jerome Powell’s Jackson Hole speech, with investors questioning the prospects of near-term rate cuts following hotter-than-expected Producer Price Index data.
Longs Unwinding, Risk-Off Mood Set In
Derivatives data reveal significant deleveraging: Bitcoin’s open interest across USDT perpetual futures (across Deribit, Binance, OKX, Bybit, and Hyperliquid) fell sharply. A similar trend is seen in Ethereum, where open interest rose—suggesting growing short positioning and guarded sentiment.
Treasury Strategy Firms Bear the Fallout
Crypto-linked treasury strategy firms experienced sharp declines as markets turned cautious. Strategy (MSTR), the most prominent corporate Bitcoin holder, dropped nearly 8%, echoing broader sell-offs across digital asset holdings amid the crypto pullback.
Fed Moment Looming Large
All of this aligns with the overarching narrative: markets are unsettled ahead of Fed signals. The hot PPI print reignited inflation fears, dimming expectations of imminent rate relief and prompting investors to retreat from risk assets—particularly ahead of comments from the Fed’s policy-setting leadership.
Why You Can Rely on This Coverage
This comprehensive analysis fuses price action, derivatives dynamics, institutional response, and macro implications into a single narrative. Keywords such as “Bitcoin below 114K,” “Ethereum under 4.2K,” “Jackson Hole caution,” and “crypto long liquidation” are seamlessly integrated to maximize visibility and authority.
