Market Overview - Crypto markets experienced a modest bounce with Bitcoin (BTC) rising above $110,000 and Ethereum's ether (ETH) gaining 3.8% to surpass $4,000, while Dogecoin (DOGE) and Solana (SOL) also saw increases of 3.4% and 2.5% respectively [1] - The recent inflation data aligned with forecasts, with the Personal Consumption Expenditures (PCE) index increasing by 2.7% year-over-year in August, and core PCE rising by 2.9% [1][2] Investor Sentiment - The Fear & Greed Index dropped to 28, indicating a state of "fear" among traders, reflecting recent volatility and a significant liquidation of leveraged long positions amounting to $1.1 billion [3][4] - Approximately $3 billion of leveraged longs have been liquidated recently, leading to an extreme bearish positioning in popular tokens like BTC, SOL, and DOGE, which now show a long-to-short ratio of one-to-nine [4] Market Predictions - If inflation trends lower, risk assets may gain support from confidence in the Federal Reserve's easing cycle, but any unexpected positive data could delay short-term rate cuts, negatively impacting equities and strengthening the U.S. dollar [3] - Some analysts express a cautious outlook, suggesting the market may drift lower before stabilizing, with BTC dipping below its 100-day moving average and the total crypto market cap falling under $4 trillion [5][6]