Bitcoin News Today: Bitcoin Slides Below $110K as Gold Digs Into Crypto's Weakness

Bitcoin's price continued its downward trend on September 4, 2025, slipping below $110,000 after a brief midweek rebound failed to gain traction. The largest cryptocurrency by market capitalization fell 2.2% over the past 24 hours, reaching $109,500. This decline erased much of the gains it had made from its low of $107,000 earlier in the week when it briefly topped $112,600 on Wednesday. Analysts and market participants closely monitored the $110,000 level, described as a critical support area characterized by high trading volume by crypto market insight firm Swissblock [1].

The decline in Bitcoin came amid broader market dynamics where gold outperformed both stocks and crypto, drawing capital from riskier assets into traditional safe havens. Gold prices surged past $3,500 per ounce, marking a fresh record after a multi-month consolidation phase. Analysts attributed this trend to rising inflation expectations and increased U.S. deficit spending, which have bolstered gold’s appeal as a global inflation hedge. Meanwhile, the U.S. labor market showed signs of weakening, raising expectations for a potential Federal Reserve rate cut by September 17, though some analysts cautioned that this could be the only cut of the year [1].

Bitcoin’s recent performance has raised concerns about a deeper correction. Bitfinex analysts noted that the cryptocurrency has entered its third consecutive week of retracing from the August all-time high of $123,640. Historical bull-market corrections have averaged around 17% peak-to-trough, suggesting the market may be approaching the typical limit of its drawdowns. However, the short-term holder realized price—reflecting the average cost basis of newer investors—currently sits near $108,900, slightly above Bitcoin’s current price. If this level fails as support, the market could face a more significant pullback toward a dense supply cluster between $93,000 and $95,000, which could act as a durable floor for the price [2].

Some market watchers remain cautiously optimistic about Bitcoin’s near-term prospects. LMAX Group strategist Joel Kruger noted that September has historically been a period of consolidation before stronger fourth-quarter performance. He suggested that a shallower correction could occur if ETF inflows, corporate treasury allocations, and favorable regulatory developments gain momentum. The performance of Bitcoin ETFs and the broader institutional adoption of the asset will be critical factors in shaping the market’s next move [2].

Bitcoin’s struggles were mirrored by other major cryptocurrencies and digital asset-related stocks. Ether (ETH), Solana (SOL), and Cardano (ADA) all fell by more than 3% over the past 24 hours. Corporate holders of Bitcoin, including MicroStrategy (MSTR), saw their stock prices decline by 3.2%, marking a 30% drop since July. This downturn has been exacerbated by a broader market rotation toward gold and away from risk assets, highlighting the challenges facing the crypto sector amid macroeconomic uncertainty [2].

The current bearish sentiment is also reflected in the options market, where Bitcoin options have shifted notably in favor of bearish positions ahead of Friday’s expiry. This shift underscores the market’s anticipation of further downward pressure in the near term. Whether Bitcoin can regain its footing and reclaim key resistance levels such as $114,000 will depend on a combination of macroeconomic developments, regulatory clarity, and the strength of incoming capital flows into the sector [1].

Source: [1] Bitcoin price sinks into 'critical support' under $110K (https://cointelegraph.com/news/bitcoin-price-sinks-into-critical-support-under-110k) [2] Bitcoin Price News: BTC Slips Below $110K (https://www.coindesk.com/markets/2025/09/04/bitcoin-slips-below-usd110k-as-analysts-weigh-risk-of-deeper-pullback)