Bitcoin News Today: Bitcoin's Slide Below $110K Sparks Fear as Macro Uncertainty Grows

Bitcoin, the world’s largest cryptocurrency by market capitalization, has seen a significant price decline, dropping below $110,000 amid growing macroeconomic uncertainty and shifting investor sentiment. The pullback has sparked concerns about the momentum of its 2025 rally, particularly as the market awaits key economic data from the U.S. and potential policy signals from the Federal Reserve. The recent price action reflects broader nervousness in risk assets and underscores the increasing influence of macroeconomic trends on crypto markets [1].

The decline coincided with rising anxiety in global markets, as investors prepare for fresh U.S. GDP reports, inflation data, and the Federal Reserve’s September meeting. Although markets broadly anticipate rate cuts in the coming months, recent hawkish statements from Fed officials have created uncertainty about the timing and aggressiveness of monetary easing. This uncertainty has spilled over into the crypto space, where Bitcoin has increasingly moved in tandem with broader risk assets such as technology stocks. The pullback below $110K has raised questions among traders about whether this is a healthy correction or the beginning of a deeper bearish phase should macro conditions tighten further [1].

One contributing factor to the Bitcoin price drop is the slowing of institutional inflows into U.S. spot Bitcoin ETFs. After experiencing record demand earlier in the year, the pace of buying has moderated as fund managers adopt a more cautious stance. Analysts note that while inflows remain positive, their reduced intensity has lessened the upward pressure that had previously supported Bitcoin above key resistance levels. This trend highlights the growing influence of institutional investors in the crypto market, who are now bringing a more measured and risk-adjusted approach to their investment strategies [1].

From a technical perspective, the price movement has triggered concern among traders. Bitcoin has broken below its 20-day moving average, a level that had previously acted as a strong support. Bearish divergence in the Relative Strength Index (RSI) further indicates that selling pressure may be gaining the upper hand. Traders are now watching the $108,000 level as the next potential support zone. If Bitcoin holds above this level, a consolidation phase could precede a recovery toward $115,000. However, a breakdown below $108K could open the door to further declines toward $102,000, the 50-day moving average [1].

Market sentiment has shifted toward caution, with fear and greed indices trending toward “fear” for the first time in weeks. Social media discussions have also turned more subdued, with fewer bullish forecasts for $150K and more emphasis on potential risks from upcoming macroeconomic events. Despite this, some indicators suggest a more balanced market. Funding rates in derivatives markets have normalized, which could signal that leveraged traders are exiting positions, reducing the risk of cascading liquidations and creating a healthier environment for long-term accumulation [1].

Despite the current pullback, analysts maintain that the long-term case for Bitcoin remains intact. The asset’s fixed supply, growing adoption by institutional and retail investors, and the upcoming Bitcoin halving later this year continue to underpin bullish expectations. Historically, halvings—which reduce the rate at which new coins are mined—have often preceded strong bull cycles. Additionally, global macroeconomic uncertainty could eventually position Bitcoin as a hedge against inflation or geopolitical instability, potentially increasing its appeal as a store of value. While short-term volatility persists, the fundamental drivers of Bitcoin’s value proposition remain unchanged [1].

Source: [1] Bitcoin Price Drop Below $110K surgeFear Ahead of Fed ... (https://thecurrencyanalytics.com/webstories/bitcoin-price-drop-below-110k-sparks-fear-ahead-of-fed-meeting/) [2] Bitcoin, Ethereum, XRP, and Dogecoin Experience Another ... (https://intellectia.ai/news/stock/bitcoin-ethereum-xrp-dogecoin-decline-again-and-clocked-out-early)