Bitcoin Dips Under $109K, Altcoins Plunge and Market Cap Falls
Bitcoin dipped below $109,000 as markets reacted to Fed signals and mounting liquidations. Bitcoin’s daily drop triggered over $300 million in liquidations. The flagship cryptocurrency plunged by over 1% daily, pushing its market cap below $2.2 trillion and lifting its dominance to 56.6%. Altcoins fell harder across the board. Ethereum slid from its all-time high by more than 4%, trading near $4,400 after a $600 drop. SOL, DOGE and LINK recorded declines up to 8%. Mid-cap tokens like XRP, TRX, BNB, XLM, BCH, AVAX and TON also shed 5-6% in 24 hours. The total crypto market cap shrank below $3.9 trillion, losing $60 billion overnight. Traders face increased volatility and liquidation risks amid bearish momentum. Monitoring key support levels and liquidity will be crucial for upcoming sessions.
Bearish
Bitcoin’s slide below $109,000 marks a breach of a key support zone that traders have watched since late July. This breakdown, coupled with over $300 million in liquidations in a single hour, signals growing bearish momentum. Historically, similar Fed-induced sell-offs sparked volatile rebounds followed by further downturns when macro risks remained unresolved. The pronounced altcoin declines—ETH down 4%, LINK eroding 8%, and others shedding 5-6%—underscore a broad risk-off mood. In the short term, traders may see continued downside pressure and heightened volatility as positions are unwound. For the long term, market stability hinges on clear monetary policy direction and renewed investor confidence. Monitoring liquidity levels and support thresholds will be critical to anticipate potential reversals or further sell-offs.