Chiara Bianchi
Bitcoin slipped under the $110,000 level for the first time in more than six weeks, signaling a sharp shift in sentiment across the cryptocurrency market. While Bitcoin led the downturn, altcoins suffered even heavier losses, reflecting growing caution among traders amid global macroeconomic uncertainty.
Bitcoin was trading at $109,317 late Monday, down nearly 3% in 24 hours, marking its lowest point since July 9. The drop follows last weekโs short-lived rally after Federal Reserve Chair Jerome Powell hinted at a possible rate cut during the Jackson Hole meeting, fueling optimism ahead of the September FOMC decision.
Market experts suggest the correction was fueled by a combination of profit-taking, technical resistance, and shifting interest rate expectations. Rachael Lucas, crypto analyst at BTC Markets, noted that Bitcoin touched $117,000 on Friday before reversing, with a lower high formation indicating fading momentum.
Lucas also highlighted that optimism from Powellโs speech quickly faded as traders reconsidered the timeline of potential rate cuts. This uncertainty intensified after reports surfaced of a single whale dumping 24,000 BTC โ worth about $2.6 billion โ sparking liquidations in derivatives markets.
Political Tensions Add Pressure
Uncertainty grew further when U.S. President Donald Trump abruptly dismissed Federal Reserve Governor Lisa Cook, raising concerns about the central bankโs independence. Rick Maeda, research analyst at Presto Research, warned that critical support levels now stand at $105,000 and $100,000. A decisive break below $100K could trigger forced deleveraging, while the upside remains capped near the $118Kโ$120K zone until macro conditions stabilize.
Altcoins See Steeper Declines
Ethereum tumbled 7.4% to $4,371 after briefly trading above $4,900 earlier in the day, close to its all-time high. Other major cryptocurrencies also slumped: XRP fell 4.8% to $2.87, Solana dropped nearly 10% to $187.7, and BNB slipped 4.25% to $838.
โAcross the broader crypto market, liquidations exceeded $900 million in a single session,โ Lucas added, stressing that capital flows have shifted from rotation between Bitcoin and Ethereum to a broader risk-off stance.
Prestoโs Maeda further noted that CoinShares recorded $1.43 billion in outflows from crypto investment products last week, ending a two-week streak of inflows. He explained that the faster sell-off in altcoins compared to majors, along with stagnant stablecoin inflows, highlights a market-wide retreat from risk rather than just sector rotation.
