FX.co ★ Bitcoin Hovers Near 6-Week Low

Bitcoin hovered around $113,000 in late August, maintaining the majority of its losses following a significant sell-off that brought it close to a six-week low. This downturn highlighted the cryptocurrency's connection with technology stocks, as investors shifted away from growth-oriented assets in anticipation of the Federal Reserve’s Jackson Hole symposium. They sought direction amid stronger-than-expected data on US producer inflation and retail sales, which curbed hopes for aggressive easing by the Fed. The sell-off was exacerbated by news of the Securities and Exchange Commission investigating potential fraud and stock manipulation at Alt5 Sigma, heightening the broader risk-aversion sentiment across speculative markets. Consequently, Bitcoin has wiped out its gains for the month and is down by over 2% from last week, after momentarily achieving a new record high thanks to institutional inflows and favorable regulatory developments.