The crypto market correction has intensified further after the US PCE data signaled hot inflation, as Bitcoin (BTC) price slips further to $108,000. Altcoins are facing even deeper corrections with Ethereum (ETH), XRP, and Solana (SOL) leading the fall. Market-wide liquidations have soared to $580 million, as Fed Chair Jerome Powell finds himself at a crossroads for interest rate cuts. Bitcoin critic Peter Schiff says, ‘It’s game over.’
Crypto Market Crash Triggers Major Liquidations
With the US PCE data surging to 2.6%, inflationary fears are back, triggering further crypto market correction as BTC slips to $108K levels. All eyes are on Fed Chair Jerome Powell, as the possibility of no rate cuts during the September FOMC pushes risk-ON assets lower.
Bitcoin has extended its weekly losses to 6.5%, and is currently trading at $108,456 levels, as investors fear a fall to $100K levels again. Popular crypto analyst Ali Martinez noted that BTC is currently mirroring the 2021 chart pattern. Thus, it is very important for Bitcoin bulls to sustain above $108,700. Falling under this could trigger another 15% crash to $94,000.
Bitcoin price under pressure | Source: Ali MartinezMoreover, Ethereum selling continues as the overall market sentiment flips to a ‘cautios’ stand, after being optimistic last week. This comes despite continuous institutional and Ether ETF inflows.
So far, Ethereum has been leading the broader altcoin market. As a result, today’s correction sends shockwaves across the crypto market. After losing $3 support, Ripple’s XRP has extended further losses to $2.81, while Solana (SOL) is once again testing the crucial support at $200. As per the Coinglass data, the crypto market long liquidations are currently at $480 million, while the overall liquidations are at $589 million.
Peter Schiff Calls It ‘Game Over’
Commenting on the current macro shift, Bitcoin critic Peter Schiff said that it’s ‘game over’ for the Trump administration. Schiff has criticized former U.S. President Donald Trump’s call for the Federal Reserve to cut interest rates, arguing that such a move would undermine creditor confidence.
According to Schiff, lowering rates would help the government reduce borrowing costs, but it risks deterring lenders. “Creditors won’t lend the U.S. government more money if interest rates are not high enough to generate returns above inflation or dollar depreciation,” he warned.
Moreover, the Bitcoin macro strategy platform ecoinometrics noted that inflation risks are set to dominate the next Fed meeting. “With inflation sticky, the Fed has little incentive to accelerate rate cuts. Risk assets won’t like that, and in the short term, that’s a headwind for Bitcoin,” it noted.
US inflation remains sticky: Source: ecoinometricsAs shown above, the latest PCE data indicates increases across headline, core, and core services measures. A broader view shows that inflation has made no significant progress over the past 16 months.
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Source: https://coingape.com/crypto-market-sees-480m-in-long-liquidations-as-peter-schiff-declares-game-over-after-heated-pce-data/
