Crypto Markets Retreat After Hitting 2025 Highs

Bitcoin and Ethereum retreated from their 2025 highs as the crypto market faced a sharp correction. Bitcoin fell 2% to around $115,000 after surpassing $123,500 last week, while Ethereum dropped 3% to $4,350, nearing its all-time high of $4,900. Analysts noted the sell-off was driven by profit-taking and a cooling of bullish momentum, with $1.7 billion in leveraged positions wiped out.

The broader market rally also paused, with the S&P 500 hovering near record levels. Hopes for a 0.5% Fed rate cut in September dimmed after hotter-than-expected wholesale inflation data. Investors now await Fed Chair Jerome Powell’s speech at the Jackson Hole symposium for clues on future monetary policy, which could dictate Bitcoin’s near-term price movement.

Crypto-linked stocks like MicroStrategy, Robinhood, and Coinbase initially dipped but recovered some losses. Analysts suggest Bitcoin may consolidate between $115,000 and $120,000, with a breakdown risking a fall to $112,000. Meanwhile, another test of the $118,000–$120,000 resistance band remains possible if support holds.

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