The price of the leading cryptocurrency has fallen below $110,000 for the first time in seven weeks.
At the time of writing, Bitcoin is trading at $110,184 (down 1.8% in 24 hours), according to CoinGecko. This is the lowest level since July 9.
The decline followed a brief rise on August 22, when Federal Reserve Chairman Jerome Powell hinted at a potential easing of monetary policy in September.
“The correction is due to profit-taking, technical resistance, and changing rate expectations,” explained BTC Markets analyst Rachel Lucas.
According to her, the positive sentiment following Powell’s speech faded as investors reassessed the likelihood and timing of policy easing. Uncertainty increased after reports that a major holder sold 24,000 BTC, triggering a wave of liquidations in the derivatives markets.
“Key support levels are now at $105,000, the breakout zone in June, and at $100,000 — both a psychological level and a major options strike,” noted Presto Research analyst Rick Maeda.
He added that a decisive break below $100,000 could trigger forced deleveraging. The potential for growth remains limited to the $118,000-120,000 range until the macroeconomic situation becomes clearer.
Ethereum also fell by 5.4% to $4,428. Other altcoins followed suit: XRP lost 2% ($2.92), Solana dropped 7.2% ($189.12), and BNB fell 3.1% ($846.18).
Daily liquidation volumes exceeded $929 million.
“We have to go through tough liquidation days for the market to continue growing,” noted CoinGecko co-founder Bobby Ong.
Peter Schiff, President of Euro Pacific Asset Management and a well-known cryptocurrency critic, predicted a drop in digital gold to $75,000 and advised to “sell now and buy back lower.”
Lucas noted that capital previously flowing between Bitcoin and Ethereum is now moving into less risky assets.
Maeda referred to CoinShares data: outflows from exchange-traded products last week totaled $1.43 billion. According to him, altcoins were sold off faster than digital gold, while inflows into stablecoins remained steady. This indicates a general decline in risk appetite across the sector, rather than a simple capital redistribution, the expert emphasized.
Earlier, from August 18 to 22, investors withdrew $1.17 billion from spot Bitcoin ETFs.
