Bitcoin Dips Below $110K Amid Profit-Taking and Rate Concerns
Bitcoin dips below $110,000 for the first time since early July 2025, falling to $108,652 in a 2% 24-hour drop. The pullback followed last week’s rally after the Fed chair hinted at a September rate cut. Rising profit-taking, technical resistance near $117,000, and a shift in rate-cut expectations drove the downturn. A reported sale of 24,000 BTC triggered liquidations, sending prices lower.
Market risk aversion spread across major cryptocurrencies. Ethereum slid 7.4% to $4,371 after briefly topping $4,900. XRP fell 4.8% to $2.87, Solana lost 9.9% to $187.70, and BNB dipped 4.25% to $838. Liquidations exceeded $900 million in a single session, while crypto investment products saw $1.43 billion in outflows.
Political uncertainty intensified after President Trump’s announcement to remove Fed Governor Lisa Cook, fueling doubts over central bank independence. Analysts identify $105,000 and $100,000 as critical support. Resistance remains at $118,000–$120,000 until the macroeconomic outlook clarifies.
Traders should monitor liquidity and key levels closely as Bitcoin dips test market resilience. Potential forced deleveraging and further sell-offs may emerge if support fails.
Bearish
Categorization as bearish reflects immediate market sell-off triggered by profit-taking and renewed Fed rate uncertainty. Past instances, such as the March dip after 2024 Fed hawkish signals, saw similar liquidity crunch and forced liquidations. The reported sale of 24,000 BTC and over $900 million in liquidations amplify downward pressure. Political uncertainty over Fed independence further undermines confidence. In the short term, traders face risk of testing $105,000 or even psychological $100,000 levels, leading to potential stop-loss cascades. Longer-term, Bitcoin’s trajectory will depend on actual Fed rate decisions and macro clarity. If rate-cut expectations materialize, a reversal could follow. However, until then, bearish sentiment likely prevails.