The global cryptocurrency market cap was trading marginally higher at the $1.02 trillion mark, rising more than 1% in the last 24 hours. However, the total trading volume tumbled over 18% to $59.37 billion.

Panic returned to the financial markets this week with the US Dollar index DXY crossing 108 - here’s why this matters! As expected, the DXY hike contributed to ending the brief recovery rally, especially in the crypto markets.

Crypto’s on and off correlation with stocks continued on Friday as the Nasdaq and S&P 500 dropped 2% and 1.2%, respectively. Stocks had risen four straight weeks before succumbing to fresh unease about inflation's staying power and monetary policies.

What you should look forward to:

Markets will be nervously eyeing remarks by U.S. Federal Reserve Chair Jerome Powell, who is scheduled to speak at an event this Friday. Powell may foreshadow the FED’s monetary direction at September's Federal Open Market Committee (FOMC) meeting. Some FED members are leaning towards voting for a third, consecutive 75 basis point rate hike instead of a less hawkish 50 basis points. Here’s why you should care…

Our take

Since September is traditionally a red month for Bitcoin and crypto markets, investors anticipate further pain before the final bottom is discovered. With Ethereum’s Merge scheduled for mid-September, the possibility of a ‘sell-the-news’ event wiping out monthly gains in ETH & other many Alts is strong. This should be considered when making plays in the next few weeks.

"Bitcoin's failure to breach $25,000 has capped its rally, and it appears that macroeconomic concerns continue to affect markets,": Joe DiPasquale, the CEO of crypto asset manager BitBull Capital.

While traders and investors have maintained a positive stance and confidence in Bitcoin price despite the price dip, the dramatic plunge of BTC to $21,000 clearly illustrates the pain points surrounding the crypto market as a result of the negative issues around Bitcoin.

At this point, it’s not certain whether the bearish streak will continue because there isn’t any indication that BTC has reached rock bottom. With BTC executing a bounce, overshooting the 50-day moving average, it has peaked at new highs following the local correction that spikes a rally on both crypto and stock markets.

What you should know

We believe that Bitcoin’s recent decline is primarily due to the massive sell-off by traders. However, there’s no reason to hit the panic button because the sell-off is linked to negative net flow on major exchanges, which hints that most participants are looking to amass or buy the dip to store in their wallets, taking advantage of the price decline.

Ether (ETH) could not avoid the recent crypto correction, which triggered a rapid downward move from around $2,000, which was recorded just a week ago.

ETH is in a position for further gains so long as the bulls don’t allow prices to slip below the key support, which is around $1500. From the bullish side, if ETH maintains this level, ETH’s further targets lie around the horizontal resistance at $2,200, which intersects with the resistance of the descending line (in yellow).

Conversely, a drop below $1500 will likely cause ETH to retest lower targets, such as $1,300. This will also mean a higher low for ETH, which is textbook bearish.

As Ethereum's merge draws closer, here are five common scams related to Ethereum 2.0

At the time of writing, today’s top gainer is EOS (EOS), which is up by 8.18% at $1.54. The top loser is Celsius (CEL), down by 18.29 % at $2.15.

The DeFI coins’ trading volume reached about $4.51 billion, which amounts to 7.68% of the total crypto market 24-hour volume. The current trading volume of all stablecoins is $56.09 billion, about 95.59% of the entire crypto market volume in the last 24 hours.

Solana's price is up by 2.45% today, while Cardano (ADA) and Binance (BNB) are up 2.05% and 5.13%, respectively. Meme coins Dogecoin and Shiba Inu had opposite fortunes, with DOGE trading 0.64% in the red, while SHIB is about 3% in the green!