PANews reported on August 4th that, according to Matrixport analysis, Bitcoin has fallen below the key technical support level of $112,000 over the past few weeks, shifting market sentiment. The analysis suggests that this decline continues seasonal weakness from August, coupled with macroeconomic uncertainty stemming from downward revisions to labor market data. A similar situation occurred last year, when the Federal Reserve unexpectedly cut interest rates by 50 basis points due to market pressure.

The market has already priced in two interest rate cuts, with the first likely to occur in September. Risk assets are likely to continue to underperform until economic and market fundamentals improve.