Bitcoin slipped to $110,186 on Tuesday, down 4.3% over the past week after briefly crossing $117,000 on Friday when Fed Chair Jerome Powell hinted at a possible September rate cut in his Jackson Hole address. Analysts see short-term downside risks, with further dips likely.
“We view this as a healthy pullback within an ongoing bullish structure. Mid-term fundamentals remain strong, supported by robust ETF flows and resilient on-chain activity. Investors may consider using corrections as strategic accumulation opportunities ahead of the next potential upside expansion,” said Parth Srivastava, Head of Quant at 9Point Capital’s Research Team.
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At 10:40 AM IST, Bitcoin was trading at $110,256 against $112,533 on Monday. BTC has gone down by 2.06% over the past 24 hours and nearly 4.40% over the past week.
According to another expert, the $200 billion wipeout across crypto markets reflects how quickly sentiment can reverse.
“Bitcoin’s drop to a 6-week low highlights the outsized impact of whale movements and shifting macro cues. Holding above key support levels will be critical now — especially as institutional interest remains a stabilising force in the long term,” said Avinash Shekhar, Co-Founder & CEO, Pi42.
The CoinSwitch Markets Desk said that Crypto markets experienced renewed sell-off pressures today after a volatile weekend, driven by a dramatic whale-induced flash crash and surging investor rotation into Ethereum. “A whale’s offload of approximately 24,000 BTC triggered abrupt liquidations — over $550 million across leveraged positions — with Bitcoin plunging from above $117K to levels near $110K, failing to cling to the earlier dovish Powell-fueled momentum,” it added.
According to CoinMarketCap data, the crypto sector’s overall market capitalisation stood at around $3.8 trillion on Tuesday.
Ethereum held near $4,447 on Tuesday after reaching the level of $4,716 on Monday. Over the past 24 hours, ETH has gone down by 5.42% and over the past one week has registered a growth of 5.30%.
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“Ethereum briefly peaked at an all-time high near $4,900, lifted by institutional demand and ETF flows — August has seen $2.5 billion in ETF inflows into Ether alone, even as Bitcoin funds suffered outflows. Despite its rally, ETH wasn’t immune: a near 6% retreat from the peak underscores rising volatility and profit-taking, while derivatives data reveals elevated short interest amid a resilient long-term bullish narrative — corporate treasuries continued to accumulate, tightening supply further,” according to CoinSwitch Markets Desk.
“Beyond price swings, the emergence of crypto treasury companies — now holding nearly 1 million BTC collectively — is creating a supply squeeze, with exchange reserves dipping below 15%, a level unseen since 2018. This institutional accumulation, paired with bullish predictions that BTC could reach up to $200K-$250K by 2026, reflects long-term confidence, though analysts caution cycles may run longer than typical,” CoinSwitch Markets Desk said.
