Bitcoin dropped below $ 108,000

Bitcoin BTC $109,918.00 Mezo Wrapped BTC 2.00% Market capitalization $40.29 million VOL. 24 hours $1.83 billion , Ethereum ETH $4,379.21 Bridged Ether (StarkGate) -0.15% Market capitalization $0.11 billion VOL. 24 hours $2.25 billion and other leading cryptocurrencies fell over the weekend as traders reacted to macroeconomic data ahead of the Federal Open Market Committee (FOMC) meeting later this month.

«The crypto market continued to fall over the weekend after the publication of the PCE index, as persistently high inflation weakened expectations of a rate cut in September,» said Min Jun, an analyst at Presto Research.

According to the PCE data released last Friday, core inflation rose by 2.9% in July. The figure was in line with forecasts but the highest since February, CNBC reported. This information reinforced the pessimistic sentiment that emerged after a series of large sales of bitcoin by whales, which led to the elimination of leverage, Vincent Liu, Chief Investment Officer at Kronos Research, told The Block.

«The key psychological support for bitcoin is at $ 100,000, while leveraged positions remain under pressure, which emphasizes the fragile liquidity,» Liu said. He also added that $ 4,000 is an important support level for ethereum. If it breaks through, he said, a deeper decline and wider liquidity shortages are possible, although a longer decline is needed for a full-blown bear market.

Traders' attention is now focused on the Non-Farm Payrolls (NFP) report, which will be released this week and may influence the Federal Reserve’s interest rate decision. The FOMC meeting is scheduled for September 16−17, and its results will be crucial for further US monetary policy. Despite signs of persistent inflation, CME Group’s FedWatch tool estimates the probability of a 25 basis point rate cut during this meeting at 87.6%.