BTC Falls Below $110K, $300B Wiped from Crypto Markets
The crypto market crash accelerated this week as Bitcoin (BTC) fell below $110,000 following mixed inflation remarks from Federal Reserve Chair Jerome Powell. BTC plunged from a $118,000 peak to a weekly low of $108,600, erasing over $300 billion and pushing total market cap down from $4.15 trillion to $3.85 trillion. Major altcoins saw steep declines: Ether (ETH) lost 13%, Ripple (XRP) dropped 9%, while DOGE, SOL, ADA, LINK and AVAX also recorded double-digit losses. HYPE plunged more than 25% amid competition from the emerging ASTER project.
Market sentiment turned cautious as the Fear & Greed Index hit a five-month low. Significant liquidations occurred when Bitcoin slid from $115,500 to $112,000 early in the week, briefly recovered to $114,000, then slid to $108,600 by Friday. Traders closed leveraged positions, adding to the market turbulence.
Key developments included Tether raising $15–20 billion at a $500 billion valuation—vastly outpacing Circle’s $30 billion—and SBF’s “gm” tweet triggering speculation of a new Solana-based perpetual DEX. Despite this bearish phase, several analysts predict a mid-term “Uptober” rally that could drive prices to new highs.
Bearish
Federal Reserve Chair Jerome Powell’s mixed signals on inflation spooked investors, triggering a risk-off reaction that sent Bitcoin tumbling from $118K to $108.6K and erased over $300 billion from the crypto market cap. This mirrors past sell-offs following hawkish Fed statements, such as in late 2023, when the market saw similar liquidations. In the short term, traders are likely to remain cautious, with heightened volatility and further de-risking ahead of Fed announcements. Long term, if the Fed shifts toward accommodative policy or bullish catalysts like an “Uptober” rally materialize, the market could stabilize and recover, but for now, sentiment remains firmly bearish.