Bearish sentiment dominated cryptocurrency markets on August 29, with Bitcoin (BTC) plunging below $110,000 for the second time in three days. According to Bitstamp data, BTC touched a low of $109,436 after peaking around $113,400 less than 24 hours earlier. The digital asset has since recovered slightly and was trading at $110,484 as of 9:20 a.m. Eastern time.
Ethereum, XRP and Altcoins Face Steep Declines
Ethereum (ETH), which achieved a new all-time high of $4,955 on August 24, tumbled over 5% to $4,340. Despite optimistic forecasts such as Tom Lee's projection of ETH reaching $10,000–$12,000 by year-end, short-term selling pressure prevailed. XRP, the third-largest cryptocurrency by market capitalization, dropped 4.2% to $2.88. Since peaking at $3.14 on August 14, XRP has struggled to hold above $3.10 and fell below $2.90 for the second time this week.
Broader altcoin losses ranged from 2% to 5%, with some tokens experiencing sharper declines. Among the top 20 assets tracked by CoinGecko, HYPE fell the most — down 8.1% in 24 hours. DOGE declined 4.1%, while ADA and SUI dropped 5% and 5.5% respectively.
US Core PCE Data Triggers Caution
The market downturn coincided with the release of July's core Personal Consumption Expenditures (PCE) index, which showed a 2.9% year-over-year increase — slightly below expectations but still indicating persistent inflationary pressures. A marginal monthly rise, if confirmed, would mark the third consecutive increase, typically giving the Federal Reserve a reason to pause on rate cuts.
However, Federal Reserve Chairman Jerome Powell's recent speech at Jackson Hole downplayed inflation concerns, reinforcing hopes that the Federal Open Market Committee (FOMC) could still cut rates in September. The actual PCE report did not alter these expectations significantly, and markets inched higher after the data landed.
Key Technical Levels for Bitcoin
Bitunix analysts recommend focusing on whether $114,500 flips into support or a retest of $107,600 support confirms market resilience. For now, BTC hovers around $110,000, with upcoming data and Fed guidance likely to dictate the next move.
Overall, the tug-of-war between inflation and rate expectations remains the dominant narrative. While July's core PCE failed to derail September cut hopes, any upside surprise in future readings could trigger renewed volatility across crypto and risk assets.