Bitcoin Slips Under $109,000 as US Inflation Data Weighs on Sentiment – Crypto News – Crypto News
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Bitcoin Slips Under $109,000 as US Inflation Data Weighs on Sentiment Bitcoin Slips Under $109,000 as US Inflation Data Weighs on Sentiment

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Bitcoin Slips Under $109,000 as US Inflation Data Weighs on Sentiment – Crypto News

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Ethereum and major altcoins dropped as markets reacted to softening consumer spending and steady inflation.

Crypto markets pulled back on Friday, with total capitalization dropping 3.5% over the past 24 hours to $3.83 trillion as broader macro concerns weighed on risk assets.

Bitcoin (BTC) fell 3.8% to $108,383, while Ethereum (ETH) dropped 4.5% to $4,340. XRP (XRP) declined 5.3% to $2.84, and BNB (BNB) dropped 1.3% to $860.26. Solana (SOL) edged down 1.3% to $209.17, capping a 16% gain over the past week.

BTC Chart

Two new Bitcoin ecosystem tokens hit the market this week, although with different results. Bitlayer, trying to supercharge Bitcoin with BitVM, has already cooled off, down over 30%.

On the other hand, Hemi, which blends Bitcoin security with Ethereum-style smart contracts, jumped nearly 28% on its launch, according to data from CoinGecko.

Leveraged positions took a beating as the market reacted to the latest PCE data, with about $543 million liquidated on Friday. ETH traders took the biggest hit at $183 million, while BTC accounted for $131 million, and SOL saw about $44 million liquidated, according to CoinGlass.

ETF Flows and Macro Update

On the institutional side, spot Ethereum ETFs added over $39 million on Thursday, Aug. 28, bringing total net assets to $29.5 billion, while Bitcoin ETFs added $179 million, raising total holdings to $145 billion.

Looking at the week as a whole, spot ETH ETFs recorded $1.25 billion in net inflows and BTC ETFs brought in $567.35 million, showing continued steady demand from institutional investors despite the market volatility.

PCI price indexes chart
PCI price indexes – BEA

Meanwhile, U.S. stock markets fell after August data suggested inflation is sticking around. Core PCE, a key measure watched by the Fed, was up 2.9% year-over-year, a bit higher than expected, while prices rose 0.2% from July.

Consumer spending rose 0.5% in July, the strongest gain in four months. Still, with inflation holding steady and spending slowing, the Fed is likely to remain cautious as it heads into its September meeting.

As the Wall Street Journal reported, some analysts still believe a rate cut is on the table, although persistent inflation could alter that stance.

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