Bitcoin News Today: Crypto Market Slides 3.4% as Bitcoin Breaks $117,000 Support

The global cryptocurrency market, which recently touched an all-time high of over $4 trillion, has seen a significant pullback, dragging Bitcoin and other major digital assets down from their lofty peaks. As of Friday morning, the total crypto market capitalization stood at $4.03 trillion, a 3.4% drop over the previous 24 hours [1]. The decline was led by Bitcoin, which fell below $117,000 on Thursday, marking the first asset to break ranks and triggering a broader market selloff [1]. This coordinated move by sellers suggests a period of profit-taking and increased pressure following recent record highs.

The decline has raised concerns among investors and market analysts, particularly as it breaks through key support levels, including the 50-day moving average at $115,000 and the recent lows around $112,000. A sustained move below these thresholds could signal a more significant shift in market sentiment [1]. However, the drop is being viewed by many as a necessary correction rather than a bearish reversal, as the market remains well above the July highs of $3.90–3.95 trillion.

The broader market selloff reflects a shift in investor behavior, with caution and profit-taking emerging as dominant themes. The recent gains, particularly in Bitcoin, had attracted a wave of buyers, but the subsequent pullback indicates a testing of market resilience. Analysts suggest that the coordinated bearish move may be masking accumulation on dips, a sign of continued long-term bullish positioning [1].

Meanwhile, Ethereum has emerged as a key rival to Bitcoin, drawing strong inflows and institutional interest. Specialized exchange-traded funds (ETFs) focused on Ether attracted $1.7 billion in August, while Bitcoin ETFs saw outflows of $436 million during the same period. Ether’s performance has been more closely aligned with U.S. stock indices, suggesting a broader correlation with traditional financial markets [1]. This trend has prompted Standard Chartered to raise its Ethereum price forecast for year-end to $7,500 from $4,000.

The broader fate of cryptocurrencies remains closely tied to global risk appetite. A continuation of the S&P 500’s recent rally could push both Bitcoin and Ether toward new record highs, reinforcing the market’s underlying strength. However, macroeconomic pressures and regulatory developments continue to introduce volatility, making short-term price action unpredictable.

While some analysts remain bullish on the long-term trajectory of Bitcoin, actual price movements have deviated from these forecasts in the near term. The market’s resilience is evident, but it remains prone to sharp corrections, especially amid shifting global economic signals and investor sentiment [1].

The $4 trillion crypto market is now in a correction phase, with Bitcoin once again at the center of the volatility. As the market digests recent gains, investors are closely watching for signs of stabilization or further decline, with the outcome likely to shape the next chapter for digital assets.

Source:

[1] Bitcoin Analysis (https://www.investing.com/crypto/bitcoin/analysis)

[2] Leap Digital Investments (https://leapdigitalinvestments.com.au/)