Earlier today, the price of Bitcoin plummeted by more than 3%, falling below $109,000 in a strong wave of selling among investors. This is accompanied by a 20% increase in daily trading volume, reaching $90 billion, with long position liquidations in BTC over 24 hours totaling $225 million. BTC has lost all its gains following last week's Jackson Hole meeting, where Federal Reserve Chairman Jerome Powell hinted at the possibility of an interest rate cut during the September FOMC meeting.
Recent analysis from Glassnode shows that BTC is at a critical juncture, and if it does not hold above this level, it could trigger several months of weakness and even deeper price corrections. According to the blockchain analysis firm, BTC is trading just above $110,800, which represents the average cost basis for investors who accumulated during the May-July rally to reach new all-time highs. If this level is not maintained, significant corrections could be triggered in the future.
Investors are nervous entering September, which is historically the weakest month for these assets. Market analysts believe that before the October-November rally resumes, investors should prepare for more difficulties.
In addition to BTC, altcoins are showing significant weakness, with top-tier digital assets such as Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) all experiencing corrections of 7-12% in the last 24 hours. This is a clear sign that capital is being withdrawn from high-risk assets, and the thin liquidity amplifies volatility.
Despite Ethereum attracting institutional inflows from Bitmine, SharpLink, and Ethereum ETFs, overall confidence is weakening as investors prepare for a pause in the bullish trend. SOL, XRP, and DOGE have faced strong pullbacks from key resistances as bears regain control.
