Cryptocurrencies are volatile investment assets, in case people forget.
After multiple weeks of sensational rallying, particularly in altcoins, Cryptocurrencies have started to find some profit-taking from their renewed highs.
Bitcoin originally led the way higher, marking its own ATH towards the last days of July (initially around $123,200). Hence, a $10,000 consolidation range followed, creating perfect conditions for altcoins to catch up—and Ethereum did not lose the opportunity, rising up to 33% in 12 days.
Multiple headwinds had caused Cryptos to surge higher: between the US opening investment and regulations for institutions and the masses to invest much more freely in digital assets, the 2025 USD fall prompting diversification (especially if you add the increasing global government deficits), and a huge appetite for risk assets amid the AI/Tech boom, there was a lot to digest for people not exposed to cryptos.
But this morning, some bad news knocked at the door of investors: Tariff-led inflation is starting to appear in the data.
This morning’s PPI report has scared markets, but equities are holding decently well compared to cryptos.
For those who have not seen the preceding cycles, cryptocurrencies, being volatile and one of the most recent asset classes, tend to be sold off in advance, particularly as market levels and positioning reach some extreme form.
It doesn’t mean that the Bull market is over yet, but there are some signs of hesitancy from Market participants.
Expect volatility to rise. and stay high.