Bitcoin Price Correction Leaves Market in Limbo

Bitcoin's recent price correction has left many wondering what lies ahead for the cryptocurrency. After hitting $81,455, BTC fell to $76,845 before closing near $77,800 on August 28th. The trigger behind this correction was macroeconomic, not crypto-related. New Fed Chair Kevin Warsh delivered a hawkish speech at Jackson Hole, pointing out that PCE inflation is still running high at 3.7% year-over-year.

The markets repriced quickly in response to the Fed's message. September rate-hike odds on CME FedWatch jumped to around 56%, and gold fell 2.4%. The cryptocurrency market also felt the impact, with Bitcoin dropping from $81,455 to a low of $76,845 before recovering some losses.

The leverage flush did the rest, with CoinGlass logging around $486 million in liquidations across roughly 95,731 traders. Longs took a significant hit, with $368 million lost. Altcoins suffered even more, with Ethereum closing at $2,443 (-2.70%), Solana at $104.13 (-4.65%), and XRP at $1.3833 (-4.80%).