Crypto Market Watch: BTC, ETH stay low as FOMC data flags inflation concerns

The crypto market stepped into another day of volatility after the Fed flagged inflation concerns in its recent FOMC data. Bitcoin reflected a minor gain of 0.13 percent to trade at $113,670 on Wednesday, August 21. As per CoinMarketCap, Bitcoin’s dominance over the market stands at 58.6 percent.

“BTC rebounded to $114,700 from an intraday low near $112,400 after Federal Reserve minutes highlighted persistent inflation concerns and tariff-driven risks and kept the tone slightly hawkish. BTC ETFs saw an outflow of $95.9 million,” CoinSwitch Markets Desk told CoinHeadlines.

Ether joined BTC in logging small profits of over three percent on Thursday. At the time of writing, the asset was trading at $4,290.

“Attention now shifts to Powell’s Jackson Hole speech on Friday, where traders will look for clearer signals on the likelihood of a September rate cut,” the CoinSwitch team added.

Altcoins reflected a mixed price movement on Wednesday. While Binance Coin, Solana, USDC, Tron, Dogecoin, Cardano, and Chainlink registered small gains of around three percent, Avalanche joined Litcoin, Mantle, and Aptos in clocking minor losses.

“Bitcoin’s dip below $113,000 and XRP slipping under a key support level are reflective of short-term volatility driven by broader macro factors and market sentiment. However, such corrections are not uncommon in the crypto landscape. We view these pullbacks as part of a natural market cycle, often setting the stage for stronger rebounds,” Avinash Shekhar, co-founder and CEO at Pi42 told CoinHeadlines.

Owing to the ongoing market volatility, Wall Street has reportedly issued warning of a massive crypto market crash.

Market analyst suggest that investor focus should remain on the underlying fundamentals and long-term utility that continue to strengthen across major digital assets.

The overall crypto market cap sluggishly rose by 0.99 percent in the last 24 hours bringing the valuation to $3.86 trillion.