The overall crypto market continued to remain sluggish, reflecting volatility and decline for most assets on Wednesday, August 20. The oldest and most expensive crypto asset, Bitcoin, slid by 1.50 percent in its price over the last day. As per CoinMarketCap, BTC is presently trading at $113,600 on international exchanges. This marks Bitcoin’s lowest price in weeks so far.
In conversation with CoinHeadlines, market analysts said the market seems to be reacting to U.S. President Donald Trump’s decision to levy 50 percent additional tariffs on aluminium and steel products.
“For now, Bitcoin needs to defend the $112,000 support. If failed, BTC could test the $110,000 zone before a relief rally. These tariffs have raised concerns about economic contraction in the U.S., creating a risk off sentiment,” said Edul Patel, the co-founder and CEO of the Mudrex crypto exchange.
Ether followed Bitcoin’s trajectory and logged a price dip of 1.75 percent on the price charts. At the time of writing, ETH was hovering over $4,170 marking a significant dip from its last week’s price that hit $4,600.
“Ethereum near the $4,100 mark captures the unease rippling through the market. Inflation worries, fading demand, and profit-taking have weighed on momentum, while Ethereum’s record short interest signals elevated liquidation risk. Fear is clearly the dominant driver right now, but history shows such stretches often mark transition zones making September less bearish and more a potential turning point for conviction” Avinash Shekhar, the co-founder and CEO of the Pi42 exchange told CoinHeadlines.
Ripple, Binance Coin, Solana, Tron, Dogecoin, Cardano, Chainlink, and Stellar are among crypto assets trading in losses. Avalanche, Leo, Litecoin, Toncoin, and Shiba Inu also failed to register any gains amid the ongoing volatility.
Data by CoinGlass shows that a total of $451.23 million were liquidated from the market in the last 24 hours.
Analysts, however, predict that this sluggish market sentiment could soon see a reversal owing to the declining dollar strength which may make non-sovereign assets more appealing.
“Overall, the crypto markets appear to be recalibrating after recent highs; with macro uncertainty looming (including Jackson Hole policy clarity ahead), we are seeing short-term retracement, albeit against a backdrop of gradually improving institutional legitimacy and regulatory accommodation,” the CoinSwitch markets desk pointed out.
Later on Wednesday, the Fed are scheduled to release the FOMC data which could bring changes to the prevailing market sentiment.