Bitcoin slipped below the key psychological level of $65,000 on Tuesday, down more than 1%, amid concerns over a potential inflation report. Ether (ETH) also declined, losing almost 2% to around $1,880.
Analysts attribute the weakness to speculative short selling and anticipation of Fed policy shifts. Iliya Kalchev from Nexo Dispatch said, “The recent payrolls data has significantly impacted market sentiment, with investors now more cautious.” Gabe Selby at CF Benchmarks added, “There is a growing belief that interest rate hikes may be delayed.”
Ether’s decline follows CoinShares’ James Butterfill’s statement, who noted the index had seen a drop. Meanwhile, Simon-Peter Massabni of XS.com suggested that Strategy might consider a $5 billion liquidation authorization in response to the market volatility.
The CME CF Bitcoin Volatility Index touched a multi-year low of 35.56 on Aug. 4, indicating current calmness but analysts remain wary of potential future moves. Whether this recent decline will lead to significant selling pressure or short-term consolidation remains uncertain.
Written by Kate Hollinsworth
Economics Desk
