Bitcoin momentarily fell below $ 110,000

Bitcoin BTC $112,327.00 Mezo Wrapped BTC -0.92% Market capitalization $40.85 million VOL. 24 hours $2.6 billion has come under pressure again: after several failed recovery attempts, its price has fallen below $ 110,000, which means a decline of almost 7% from its peak after Fed Chairman Jerome Powell’s speech. According to market data, the fall was accompanied by large-scale liquidations worth more than $ 500 million, while Ethereum ETH $4,424.86 Bridged Ether (StarkGate) -3.14% Market capitalization $0.11 billion VOL. 24 hours $4.43 billion , which recently rose to $ 4,900, has rolled back to $ 4,300. At the same time, altcoins such as SOL $188.43 Binance-Peg SOL -4.23% Market capitalization $0.21 billion VOL. 24 hours $1.17 billion and DOGE $0.21 Binance-Peg Dogecoin -3.40% Market capitalization $0.54 billion VOL. 24 hours $0.4 billion lost 6−8%, which led to a total liquidation of $ 700 million.

In their Market Pulse report, Glassnode analysts called the situation an example of a market rally exhaustion. They noted a weakening of spot flows, billions of dollars in outflows from ETFs, and a sharp decline in realized gains to breakeven. QCP Capital noted that the key trigger for the crash was the sale of 24,000 BTC by one of the early investors, which brought the market down amid low liquidity.

Despite the pessimism of short-term players, some institutional investors are using the volatility to build up their positions. According to Enflux, the market is showing a clear gap: while retail traders are recording losses, large players are increasing their stakes. Examples include a $ 2.55 billion bet on ETH through a single contract and the UAE royal family’s $ 700 million investment in bitcoin through Citadel Mining.

However, strategic capital accumulation cannot solve the liquidity problems of the bitcoin network itself. Transaction fees are falling to decade lows, blocks are being cleared without overloading, which puts additional pressure on miners after the last halving. This signals a decline in blockchain activity and growing risks.

Market participants warn that September, a historically weak month for BTC, could be crucial. The future scenario will determine the confrontation: whether smart capital will be able to compensate for the panic outflow of retail investors or whether the market will enter a deeper correction phase.