Bitcoins overall grim situation only worsened today as the asset just plunged to its lowest price level in over seven weeks at $108,100.

This came after the release of the US PCE data, which showed that overall prices increased by 2.6% in July.

These numbers were essentially in line with experts expectations and matched the previous month. However, core PCE inflation rose by 2.9%, which was slightly higher than in June.

The PCE data is the Federal Reserves preferred inflation measurement, and the percentage for July was higher than the central banks target. However, the difference is considered rather negligible, which should not deter the Fed from cutting the rates in September, as many anticipate.

Data from Polymarket shows that the current odds for a 25 bps rate in September remain at 81%, having surged after last weeks Powell speech.

Despite this, the cryptocurrency market reacted with an immediate and sharp drop. Bitcoins price had recovered some ground and briefly jumped to $111,800 before the bears resumed control of the market and pushed it south to $108,100, a seven-week low.

The primary cryptocurrency skyrocketed last Friday after the Jackson Hole speech, rising from $112,000 to over $117,000. However, it has lost all momentum and now struggles to remain above $108,000, while many speculate that the current bull run could be halted or at least paused for the moment.

The situation with the altcoins is similar or even worse. Ethereum is down by more than 3% and fights for $4,300, while XRP has dropped to $2.83. The total crypto market cap has erased $170 billion since yesterdays peak and is down to $3.830 trillion.

This volatility has harmed over-leveraged traders, as the total value of wrecked positions is well above $500 million on a daily scale. More than 140,000 traders have been liquidated, with the single largest wrecked order taking place on OKX.

Liquidation Heat Map. Source: CoinGlass