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🔥 **The crypto market is facing its first major test since rallying to all-time highs last week, with Bitcoin battling key support levels amid growing fears of a deeper correction. Here’s what you need to know today:**

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### 📉 **1. Market Bloodbath: BTC Dips 7% From ATH, Altcoins Hit Harder**

Bitcoin briefly plunged to **$113,000** before recovering to **$115,118**, down 7.3% from its recent peak of **$124,128**. Ethereum fared worse, dropping **5%** to **$4,237**, while altcoins like Arbitrum (ARB) and Pi Network (PI) saw losses exceeding **6%** .

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### 🏛️ **2. Fed Jitters Grip Markets Ahead of Jackson Hole**

All eyes are on **Fed Chair Jerome Powell’s Friday speech** at the Jackson Hole symposium. Traders are nervously repositioning after expectations for a September rate cut **"dropped sharply"**. A hawkish signal from Powell could trigger a **"rapid correction"** in BTC and ETH, warns Derive.xyz founder Nick Forster .

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### 💸 **3. $270M Liquidations Wreck Leveraged Traders**

The past 24 hours saw **$270 million** in crypto liquidations, with **95%** being long positions. ETH led with **$170 million** in liquidations, followed by BTC at **$104 million**. Funding rates turned negative, reflecting souring short-term sentiment .

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### 🚨 **4. Wall Street Warns of $6.6T Banking Exodus from Stablecoin Loophole**

U.S. banking giants including JPMorgan and Bank of America issued a dire warning: The newly passed **Genius Act stablecoin bill** could trigger **$6.6 trillion** in deposit outflows if loopholes allowing yield-paying stablecoins aren’t closed. This could **"undermine the banking system"** itself .

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### 📊 **5. Derivatives Data Reveals Key Shift**

- **BTC** open interest dropped to **214,000 BTC**, lowest in over a week, signaling **long unwinding** (not new shorting).

- **ETH** saw open interest **rise to 5M ETH**, suggesting **new short positions** are being opened.

- Put options for BTC and ETH are trading at a premium, reflecting **bearish hedging demand** .

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### 🐋 **6. Whales vs. Institutions: A Battle Underneath**

On-chain data shows **12,000 BTC moved to exchanges** (potential profit-taking), but **MicroStrategy bought 430 BTC** during the dip, and Japanese firm **Metaplanet added 775 BTC** (~$93M). This clash between whale selling and corporate accumulation defines the current volatility .

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### 📈 **7. Long-Term Bullishness Intact: VanEck Holds $180K BTC Target**

Despite short-term turbulence, VanEck reaffirmed its **$180,000 Bitcoin price target for late 2025**. Similarly, Chainlink’s Sergey Nazarov theorized a **$10M/BTC scenario** if institutional allocation reaches just 2.5% .

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### ⚡ **8. Bitcoin L2 Innovation Heats Up**

Amid the pullback, **Bitcoin Hyper ($HYPER)**, a Solana VM-based Bitcoin L2, gained traction with its presale hitting **$10.6M**. It aims to bring smart contracts and DeFi to Bitcoin, highlighting ongoing infrastructure growth even during downturns .

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### 📌 **Key Levels to Watch**

- **BTC Support:** $114,000 (50-day SMA), then $112,000. Break below targets $105K–$107K.

- **BTC Resistance:** $118,000, then $120,000.

- **ETH Support:** $4,200; **Resistance:** $4,400 .

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### 💡 **The Bottom Line**

This dip appears driven by **short-term macro fears** and **leveraged washouts**—not broken fundamentals. Institutional accumulation continues, and Bitcoin’s long-term narrative remains stronger than ever. **Volatility is the price of admission.**

**Stay safe, trade smart, and keep zooming out.**

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🔔 **Follow for real-time updates and breaking crypto analysis!**

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**Sources:** Forbes, CoinDesk, CryptoNews, AInvest, Bitcoinist, Mudrex

*#CryptoCrash #Bitcoin #Fed #Stablecoins #CryptoNews #BTC #ETH #Trading*