The crypto landscape experienced a dramatic shakeup over the past day, with a hefty $270 million in liquidations rocking traders. Ether and Bitcoin were the primary casualties of this market swoon, as optimism for a September Federal Reserve rate cut rapidly dissipated. The odds of a “no cut” scenario, as indicated by Polymarket, surged from 12% to 26%, prompting investors to reassess their positions ahead of Jerome Powell’s much-anticipated speech at Jackson Hole this Friday.
Crypto Markets Face Volatility
In the latest market twist, crypto traders found themselves unwinding bullish bets, with Ether (ETH) leading the charge in liquidations. Nick Forster, founder at Derive.xyz, characterized the upheaval as a “reset of short-term positioning” rather than a fundamental market shift. “It’s been a turbulent 24 hours,” he noted, emphasizing that the liquidations were predominantly in long positions, accounting for 95% of the total fallout. This aligns with broader market trends, as detailed in Volatility Vanishes Across Markets as Traders Brace for Powell’s Jackson Hole Speech.
Ethereum and Bitcoin saw modest pullbacks—3% and 2%, respectively—triggering a wave of liquidations. As expectations for a Fed rate cut in September waned, the macroeconomic recalibration rippled through the derivatives market. ETH’s seven-day implied volatility climbed to 73% from 68%, a sign that traders anticipate short-term instability but aren’t preparing for an extended downturn.
Fed Rate Speculation and Market Sentiment
The focus now turns to Jackson Hole, where Federal Reserve Chair Jerome Powell’s remarks could further influence market sentiment. Augustine Fan, SignalPlus’ head of Insights, pointed out that any aspirations for a 50-basis-point cut at the Fed’s September meeting have all but evaporated. “Attention is on Jackson Hole later this week, but given the inflation backdrop, we’re not expecting significant dovish surprises,” Fan remarked.
Bitcoin’s recent slip to $115,036 marks its lowest point in nearly two weeks, while Ethereum has settled at $4,235. XRP, meanwhile, has demonstrated relative resilience, maintaining a value of $3.02 despite shedding some of its earlier gains. This backdrop of fluctuating prices underscores the fragility and unpredictability of the current crypto environment. For a closer look at recent price movements, see Solana’s SOL, XRP Dive 5% Amid Profit-Taking; Bitcoin Traders Eye Gold Divergence.
Market Projections and Future Implications
Looking ahead, the market’s gaze is fixed on potential price movements. Forster highlighted a 21% probability of Bitcoin hitting $100,000 before September’s end, a slight increase from previous estimates. Similarly, the odds of Ethereum correcting to $4,000 by the month’s close have climbed to 60%. These figures suggest a cautious optimism among some traders, even as others remain wary of the broader economic landscape.
As crypto markets continue to grapple with shifting narratives and macroeconomic pressures, the coming days will be crucial in determining the next phase of this volatile trajectory. With Jackson Hole on the horizon, traders are bracing for insights that could either stabilize or further unsettle the turbulent waters.
While the current downturn has left many investors reeling, it also raises questions about the resilience of cryptocurrencies in the face of global economic uncertainty. As the market awaits Powell’s speech, the potential for further twists and turns remains high—leaving traders, analysts, and enthusiasts alike on the edge of their seats, keen to see how the crypto saga unfolds.
Source
This article is based on: Crypto Traders Eye Jackson Hole as Ether, XRP, Solana Drop Sharply in Retreat
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
