Bitcoin was trading at $79,051, up 0.74% in 24 hours as of 8:50 a.m. on the 27th, after failing to sustain a break above $80,000. The cryptocurrency reached $81,255 on the 25th, its highest level since May 11, then fell about $3,000 in one day to $78,600 before recovering into the $79,000 range. Profit-taking after the rally and July U.S. Personal Consumption Expenditures (PCE) inflation of 3.7% year over year have reduced expectations for Federal Reserve rate cuts at the September Federal Open Market Committee meeting. A stronger dollar has weighed on risk assets such as Bitcoin. Still, the Crypto Fear & Greed Index remains at 74, or Greed, suggesting traders see the decline as a temporary correction. Ethereum rose 2.6% to $2,504, while XRP, Solana, Cardano and Dogecoin fell 3.8%, 3.6%, 5.4% and 2.3%, respectively. Nvidia’s quarterly earnings, reports from Russian media about a possible U.S.-Iran ceasefire agreement and high leverage in derivatives markets are also influencing sentiment. Total open interest reached $140.9 billion, while 24-hour liquidation volumes surged 128%. Long liquidations are concentrated between $77,300 and $78,000, creating a risk of cascading liquidations below $79,000; a confirmed bottom and break through resistance could instead trigger a short squeeze. Market participants view Federal Reserve policy and Nvidia’s results as key near-term variables. Renewed rate-cut expectations or stronger risk appetite could support another move above $80,000, while persistent inflation could prolong range-bound trading.