Bitcoin Price Weakness Returns as Crypto Markets Brace for US PCE Data
Bitcoin (BTC) fell nearly 3% on Friday, dropping to local lows of $109,436 on Bitstamp, attributed to whale selling. Long liquidations reached $350 million in 24 hours, with traders blaming large market players for the price movement. Notable inflows into market maker Wintermute were observed, involving BTC and Ether (ETH). Whale selling pressure has consistently influenced BTC's price behavior throughout August, leading to a pattern of consolidation and capitulation. Analysts suggest the market is currently in a capitulation phase, which may last for weeks, providing potential buying opportunities. Concerns about macroeconomic factors, particularly US inflation data from the Personal Consumption Expenditures (PCE) Index, also contribute to BTC's price weakness. The PCE data is critical ahead of the Federal Reserve's anticipated interest-rate cut in September, with potential implications for crypto and risk assets.