Bearish sentiment swept through cryptocurrency markets on August 29, 2025, erasing gains from earlier in the week. Bitcoin (BTC) plunged below $110,000 for the second time in three days, briefly touching $109,436 on Bitstamp before recovering to around $110,000 at press time. The selloff was broad-based, with major altcoins recording losses of 2% to 8%.
Bitcoin's Volatile Move
Bitcoin had peaked near $113,400 less than 24 hours earlier, making the drop of roughly 3.5% particularly sharp. Traders pointed to profit-taking ahead of the US July core Personal Consumption Expenditures (PCE) report as a key catalyst. After the data showed core inflation rising 2.9% year-over-year and a marginal monthly increase, Bitcoin recouped some losses. However, the $114,500 level remains a resistance to watch; a flip to support would signal renewed bullish momentum.
Ethereum and Leading Altcoins Retreat
Ethereum (ETH), which just reached an all-time high of $4,955 on August 24, tumbled over 5% to $4,340. Tom Lee, chairman of Bitmine Immersion Technologies, has projected an end-of-year trading range of $10,000–$12,000 for ETH, but near-term technicals show sellers in control. XRP dropped 4.2% to $2.88, failing to hold above $3.10 after peaking at $3.14 on August 14. Among the top 20 coins by market cap tracked by Coingecko, HYPE suffered the steepest decline at 8.1% in 24 hours. DOGE fell 4.1%, ADA 5%, and SUI 5.5%.
Macro Context: Core PCE and the Fed
The market's focus was squarely on the core PCE index, the Federal Reserve's preferred inflation gauge. July's data came in at 2.9% year-over-year, marginally above expectations but not hot enough to derail rate-cut bets. Fed Chair Jerome Powell's dovish remarks at Jackson Hole—downplaying lingering inflation risks—kept the probability of a September rate cut near 65% in fed funds futures. However, worries about a potential “one-and-done” or “wait-and-see” stance persist if future data surprises to the upside.
Key Levels and Analyst Outlook
Bitunix analysts highlighted that for Bitcoin, the level to watch is whether $114,500 can be reclaimed as support, while a retest of $107,600 would test market resilience. They advised focusing on core services inflation and wage growth, along with US Treasury yields and the DXY, as predictors of risk appetite. As of 9:20 a.m. Eastern time, BTC was trading at $110,484, and altcoins had stabilized slightly. The broader crypto market remains data-dependent heading into the September FOMC meeting, with upcoming labor market reports likely to be the next catalysts for volatility.