Crypto market summary: Bitcoin is worth more than $115,000.
The overall market capitalization of cryptocurrencies has increased by $63 billion in the last day to $3.95 trillion, putting the market close to a significant ceiling.
The sector is testing the $4.01 trillion resistance zone, which is generally regarded as a turning point for the next stage of market direction, and traders are keeping a careful eye on it.
Bitcoin and Ethereum Performance
Bitcoin remains the centerpiece of market momentum. The asset last traded around $115,618, maintaining critical support at $115,000. Holding above this threshold could open the door for a push toward $117,200, edging the cryptocurrency closer to the highly anticipated $120,000 level.
Ethereum is currently trading close to $4,554, mostly following the market as a whole. Although the asset’s upward momentum seems less evident than Bitcoin’s, it nonetheless exhibits relative steadiness.
ONDO was the most notable altcoin, rising 10% and aiming for resistance at $1.17. But if the momentum slows, the token might return to $1.07 or even $1.00.
Sentiment and investor outlook
With a score of 50, the Crypto Fear and Greed Index is neutral. This balance, when neither optimism nor fear predominates, represents investors’ cautious approach. It seems that traders are holding onto their positions in anticipation of more robust indications from the market technicals and macroeconomic environment.
Uncertainty has been added to the crosscurrents by U.S. macroeconomic data. Consumer prices were at their highest level since January, according to the CPI, but attention soon turned to the labor market. The number of weekly unemployment claims increased to 263,000, which was significantly more than the projected 235,000 and the largest since October 2021. This unexpected development strengthened worries about a softer work climate.
Expectations for Federal Reserve policy have changed as a result. With an 11% possibility of a larger-than-expected rate decrease exceeding 25 basis points, investors are progressively pricing in a rate cut at the Fed meeting on September 17. Although a lot relies on whether inflation and employment trends continue to diverge, such easing could offer a supportive environment for risky assets, such as cryptocurrency.
Outlook
Two factors will determine the short-term destiny of digital assets: if Bitcoin can continue its drive beyond $117,200 and whether total market capitalization can convincingly secure the $3.94 trillion support. Investors will also be keeping an eye on macroeconomic indicators because changes in monetary policy assumptions might either boost or deflate the cryptocurrency rise.
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