Crypto Sell-Off Deepens as Bitcoin Crashes to $108,000
Analysts argue the pullback is simply a “digestion” of last week’s losses, not the beginning of a deeper correction.
Quick overview
- The cryptocurrency market is experiencing continued volatility, with Bitcoin down 2.2% and Ethereum slipping under $4,000.
- Altcoins are facing significant selling pressure, with declines of up to 5% for several major tokens.
- Despite the downturn, analysts remain optimistic, viewing the pullback as a digestion of previous losses rather than a deeper correction.
- Bitcoin's rising correlation with gold and resilient institutional sentiment suggest potential support for the market amid ongoing Fed rate cut expectations.
The cryptocurrency market remains volatile, extending last week’s declines. Bitcoin (BTC) is down 2.2% in the past 24 hours, breaking below the $111,000 support to trade near $108,000. Ethereum (ETH) also drops about 2.2%, slipping under $4,000 to around $3,800, according to Binance.
Altcoins face even heavier selling pressure.
- BNB: -2.6%
- TRX: only major token showing a slight rebound
- XRP, SOL, DOGE, ADA, LINK, HYPE: declines of up to 5%
Despite the red screens, market experts remain optimistic. Analysts argue the pullback is simply a “digestion” of last week’s losses, not the beginning of a deeper correction. The previous selloff was triggered by renewed U.S.–China trade tensions.
A bullish signal supporting this view: Bitcoin’s correlation with gold has surged to 0.9, the highest in years, according to CryptoQuant. Both assets have recently moved in sync during geopolitical shocks—a sign of BTC’s growing status as a macro hedge.
Institutional sentiment also appears resilient. Crypto ETFs have posted negative net flows on only three days so far this month.
All Eyes on the Fed
Markets continue to price in two Fed rate cuts this year. Recent comments from Fed Chair Jerome Powell suggested the central bank is nearing the end of balance sheet reduction, which investors interpreted as dovish.
Why it matters:
Shrinking the balance sheet drains liquidity—similar to raising rates. Signaling an end to this process is seen as a form of stealth stimulus, increasing liquidity and supporting risk assets like crypto.
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