Strong Dollar, Crypto Wait-and-See
Bitcoin (BTC) moved flat, trending lower, around $111,000, while Ether (ETH) held around $4.58,000 and Solana (SOL) hovered around $204 during Wednesday's Asia-Europe session. Trading remained volatile after the early-week sell-off, with market participants tending to hold positions while awaiting the next macro catalyst.
Risk-on/off sentiment remains driven by the Fed drama: President Donald Trump's move to remove Governor Lisa Cook has raised concerns about the central bank's independence, making investors selective about riskier assets—including crypto. On the macro front, focus shifts to the PCE (the Fed's favorite inflation gauge) released Friday; this release is crucial as markets weigh the chances of a September interest rate cut. A hotter PCE could reduce room for easing, strengthen the dollar, and pressure crypto assets; conversely, a benign reading could potentially trigger a relief rally.
Looking ahead, traders will be closely monitoring fund flows into major coins, derivatives market dynamics, and US policy headlines. Volatility remains high: Last week, BTC-ETH's rapid surge following a dovish signal triggered hundreds of millions of dollars in liquidations in the futures market—a reminder that one-way movements can reverse quickly. Risk management (position sizing, stop-loss) and level discipline are key until the inflation and interest rate picture becomes clearer.
Source: Newsmaker.id
