Bitcoin and Ethereum experienced significant declines as traders took profits following recent record highs, amid macroeconomic pressures. Bitcoin fell to around $113,500, raising concerns about a deeper market correction after slipping below key trendlines. The cryptocurrency market cap decreased by 0.4% to $3.87 trillion, intensifying fears of a major correction. Ether dropped to approximately $4,159, down more than 12% from its recent peak. In addition, ADA lost 8.54% and DOGE fell by 2.61%. Increased inflation data from the U.S. has dampened expectations for immediate rate cuts, prompting profit-taking among traders. Despite these short-term setbacks, institutional interest in Ethereum remains strong, indicating a potentially temporary nature of the declines. The leveraged positions in derivatives markets also greet a risk of increased volatility as sentiment fluctuates, especially with upcoming economic policy announcements from the Federal Reserve.

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