Bitcoin and Ethereum Lead Market Pullback as Traders Await Fed Signals

The cryptocurrency market saw a sharp pullback today, with Bitcoin dropping around 2.3% to trade near $115,500, while Ethereum slid by more than 5%. Altcoins such as XRP, Solana, and Dogecoin also experienced declines between 4–6%. The sudden shift in momentum comes as traders reassess expectations of U.S. Federal Reserve rate cuts and react to cautious comments from the U.S. Treasury, which dismissed speculation of expanding Bitcoin reserves.

Despite the short-term dip, institutional flows into Ethereum remain a bright spot. Spot Ethereum ETFs in the U.S. have recorded historic inflows of $11 billion year-to-date, pushing their total net assets to approximately $28 billion—roughly 5% of ETHs market capitalization. This signals growing institutional confidence in Ethereum as a long-term investment vehicle, even in the face of broader market volatility.

Meanwhile, the Forex market remains steady but watchful. The Indian rupee strengthened against the U.S. dollar on the back of positive domestic equity performance, while traders worldwide keep a close eye on geopolitical developments and the upcoming Jackson Hole Symposium, where the Fed is expected to provide key insights on monetary policy.