Analysts explain the reason for the sharp drop in the cryptocurrency market

Over the past day, the crypto market has experienced a pullback: the total capitalization has fallen to $ 3.82 trillion. Bitcoin BTC $109,049.00 Mezo Wrapped BTC 0.29% Market capitalization $39.97 million VOL. 24 hours $1.51 billion lost 1.15% and is trading at $ 113,602. Ethereum ETH $4,371.29 Bridged Ether (StarkGate) 0.40% Market capitalization $0.11 billion VOL. 24 hours $1.76 billion also came under pressure from sellers, falling by 1.43% to $ 4,156, although at the same time, ETH has maintained more than 10% growth over the past week.

The key factor behind the decline was investor caution ahead of Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Symposium on August 23. Data from the blockchain showed that about 12,000 BTC were transferred to the exchange, which may indicate profit-taking near historical highs. Large inflows of coins to exchanges are traditionally seen as a signal of possible whale activity for sale.

Altcoins also followed the general trend. XRP XRP $2.82 XRP -0.42% Market capitalization $167.54 billion VOL. 24 hours $0.26 billion dropped by 3.28% to $ 2.89, becoming one of the biggest losers among the leading tokens. Solana SOL $201.13 Binance-Peg SOL -1.07% Market capitalization $0.22 billion VOL. 24 hours $0.94 billion lost 1.45% and is trading at $ 180.81, Dogecoin DOGE $0.22 Binance-Peg Dogecoin 1.68% Market capitalization $0.55 billion VOL. 24 hours $0.16 billion is down 1.81% to $ 0.21.

The worst performer among the top 10 was Cardano ADA $0.82 Cardano 0.42% Market capitalization $29.93 billion VOL. 24 hours $84.84 million , which fell by almost 6% to $ 0.84. This is one of the largest daily declines among major assets. Stellar XLM $0.36 Stellar -0.39% Market capitalization $11.22 billion VOL. 24 hours $19.92 million and Sui SUI $3.29 Sui 0.42% Market capitalization $11.56 billion VOL. 24 hours $0.11 billion also fell by more than 1.5% each.

The market is debating whether bitcoin and altcoins have already reached the peak of their current rally or whether the correction is a temporary pause before further upward movement. The answer will largely depend on the Fed’s signals and the behavior of large investors at the nearest support levels.