Why Did Bitcoin Dip Below 115,000 USDT?

Bitcoin’s recent drop—falling under the 115,000 USDT mark—is driven by several interrelated factors:

1. Macroeconomic Pressures & Fed Policy Uncertainty

Higher-than-expected U.S. inflation data, notably a rise in the Producer Price Index (PPI), has pushed markets into a risk-off mood. This diminishes expectations for aggressive Fed rate cuts.

The cooling of optimism, coupled with Fed uncertainty, has taken the wind out of the crypto market's sails.

2. Profit-Taking After All-Time Highs

Bitcoin recently soared to over $124,000, prompting many investors—especially short-term ones—to lock in gains.

This wave of profit-taking, combined with risk-off sentiment, naturally pushed prices downward.

3. Liquidity Drain & Exchange Outflows

A sharp decline in Binance’s Buying Power Ratio—from strong stablecoin inflows to a negative figure—signaled that buying pressure dried up quickly.

This drop in liquidity often acts as a harbinger of correction in crypto markets.

4. Technical Consolidation & Market Indecision

Analysts describe Bitcoin’s current move as a consolidation phase—trading below $116,000 amid broader macroeconomic caution.

Surpassing $115,000 again will likely be key to determining whether we’re heading toward further decline or the next move up.

5. Additional Factors

Regulatory ambiguity, sentiment shifts, and potential whale selling also add to the downward pressure.

Breaching the psychological $115,000 level likely activated stop-loss orders and escalated short-term selling.