Anxiety strikes on cryptomarkt: Bitcoin, XRP and Cardano deep in red

The cryptomarkt started the week with losing. Bitcoin (BTC) fell to around $ 115,000, while Ethereum (ETH) dropped back to slightly above $ 4,200.

The decrease follows on a relatively flat weekend, in which investors still look hopefully ahead of a possible interest rate reduction in September. But that hope now makes way for doubt: the fear starts to strike.

Crypto drops at Weekstart – biggest losses for Altcoins

Bitcoin today is 2.4 percent in red. Ethereum lost 4.4 percent. Solana (SOL) and XRP were among the largest fallers among the big coins with losses of almost five percent.

BNB (BNB) dropped light to $ 833. Dogecoin fell towards $ 0.22 and Cardano (ADA) held up around $ 0.91, despite the sales pressure. The price movements reflect a lack of convincing macro-economic signals, while investors prepare for what is to come.

Doubt about interest reduction puts pressure on the market

Investors focus on the next meeting of the Federal Reserve in September. The market is counting firmly on an interest rate reduction, and that expectation can already be seen in the pricing of bonds and futures.

Yet economists warn that that hope can be out of place. According to the British bank giant Barclays, optimism is exaggerated. If the FED decides to hold on to the current interest level, that could be a painful surprise- with possibly major consequences for both the shares and cryptomarkt.

Retail figures can give direction

This week the FED does not make a decision, but important quarterly figures from American retailers can still set the tone. Big names such as Walmart, Lowe’s and Target come with their reports. They provide insight into how consumers deal with inflation and import duties.

“Those figures can influence sentiment in the market and possibly also put the crypto prices in motion,” said Jeff Mei, COO of BTSE.

For the time being, the market continues to float between hope and fear. In September it must become clear whether Bitcoin returns when digital gold, or will go along with the whims of the risk market.