Crypto markets took a hit following the latest Consumer Price Index (CPI) report, with both Bitcoin and Ethereum seeing notable declines.

🔻 Market Movements:

• Bitcoin: Dropped by 4%, now around $58,500

• Ethereum: Fell by 3.8%, currently at $2,630

• Total Crypto Market Cap: Contracted by 4.4% to $2.1 trillion

📰 Key Insights:

• CPI Report: Showed a 0.2% increase in prices for July, with annual inflation at 2.9%. Core CPI also rose by 0.2% monthly, hitting a 3.2% annual rate—both in line with expectations.

• Market Sentiment: Analysts suggest the CPI report was "boring," which was needed to keep the Fed on track for a potential rate cut in September.

• Price Speculation: Despite the CPI's "boring" results, market analysts remain divided on the long-term impact on crypto, with some predicting no major Bitcoin breakout until Q4.

🚨 Notable Events:

• U.S. Government BTC Transfer: Nearly $600 million in seized BTC was moved to Coinbase, sparking speculation and contributing to the price dip.

• ETF Outflows:

- Bitcoin Spot ETFs: Recorded a net outflow of $81.4 million on Aug 14.

- Ethereum Spot ETFs: Fared better with $10.8 million in net inflows, but Grayscale’s Ethereum Trust continued its outflows, losing $16.9 million.

• On-Chain Analysis: A decoupling was observed between Bitcoin’s price and holdings by the ETC Group Physical Bitcoin (BTCE), signaling potential shifts in market dynamics.

📊 Technical Indicators:

• Support Levels: $58,800, $57,000, $59,000

• Resistance Level: Close to $60,250

• RSI Indicator: Holding above 50, suggesting potential bullish momentum.

• Future Outlook: Anticipation of a 50 bps rate cut in September could trigger a rebound in crypto prices.

💡 Stay Informed: With market volatility expected to continue, keep an eye on the Fed’s moves and key technical levels!

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