Bitcoin experienced volatility last week, hitting its highest point at $124,500 before plummeting sharply. This decline followed positive U.S. inflation data but was fueled by rising producer prices, sending traders down from the previously high-hope rate cuts and pulling Bitcoin’s price closer to $117,000. Ethereum ETFs saw massive outflows as well, highlighting market fragility. Data indicates that expectations for a September rate cut from the Federal Reserve have dropped slightly, weighing on Bitcoin’s trajectory. Technical charts also suggest a bearish double-top pattern, signaling potential further pressure before a possible rebound. Meanwhile, the broader crypto market experienced losses across altcoins. Ethereum saw significant price drops following its recent all-time high and closed near $4,500 after nearly hitting $4,891. Other major coins like Solana, Avalanche, and Chainlink also witnessed notable losses. This correction impacted the overall crypto market cap, leading to a drop of over $80 billion overnight, reaching almost $4 trillion. In contrast, MNT saw substantial gains, proving that momentum still exists even in the current red market. 61% of Bitcoin’s share of the total market is now dominated by the cryptocurrency. Crypto ETFs are mirroring investor sentiment as outflows spiked following Ethereum’s retreat, reflecting a quickening pace of profit-taking from institutional investors. Grayscale remains a notable player but BlackRock’s ETHA has emerged as a significant competitor. As for Bitcoin, analysts expect similar behavior when the next spot ETF approval cycle expands further. **The crypto market stands at a crucial juncture.** Bitcoin’s future depends on Fed signals and inflation data. If rates are reduced again, Bitcoin could quickly regain new highs. Ethereum’s momentum may rely on whether ETF inflows return, as institutional demand has been proven to be a powerful force. Altcoins remain volatile, closely tied to macroeconomic events like stagflation, tariff impacts, and any new Fed guidance. The coming weeks will reveal whether this correction is merely a short pause or a sign of a deeper pullback.