Bitcoin News Today: September Weakness, Fed Fears Send Crypto Reeling as $530M Liquidated
Bitcoin fell to its lowest level in seven weeks on Friday, hitting $108,617 according to CoinGecko data, as crypto liquidations exceeded $530 million over a 24-hour period. The price decline was fueled by a mix of macroeconomic factors, including strong U.S. inflation data and increased selling pressure from large holders. Over the last 30 days, Bitcoin has lost approximately 8% of its value, with a 12% pullback from its all-time high of $124,128 reached earlier in the month. Ethereum also experienced a significant dip, trading at $4,295—a 6% decline in the past 24 hours and 13% from its record high of $4,946 set on Sunday.
The market correction led to widespread losses for futures traders who had taken long positions in crypto assets. CoinGlass data showed that $446 million in long positions were liquidated across all cryptocurrencies within a 24-hour span, with total liquidations—including short positions—reaching $535 million. Other major altcoins were also affected: XRP dropped 6% to $2.84, Solana fell 3% to $209, and Dogecoin lost significant ground after briefly finding support at $0.212 before slipping further.
The price slump came amid the release of U.S. inflation data, which showed the core personal consumption expenditures (PCE) index rising to 2.9% in July. While this matched forecasts, it reinforced concerns among traders about potential delays in interest rate cuts by the Federal Reserve. The Fed’s preferred inflation gauge has contributed to a broader selloff in risk assets, with the S&P 500 and Nasdaq also experiencing losses. Analysts noted that September is historically a weak month for Bitcoin and equities, with some warning of a potentially deeper correction.
Technical indicators pointed to a bearish sentiment in the market. Bitcoin’s failure to reclaim the $112,000 support level intensified concerns of a further decline toward $100,000, according to market analysts. Some traders, however, identified potential signs of a reversal, such as a bullish RSI divergence on the four-hour chart. Javon Marks, a crypto commentator, suggested that such divergence could signal an eventual rebound toward $123,000, a near 15% recovery from current levels.
Despite the recent weakness, some market participants remain cautiously optimistic. Myriad Markets users, for example, have a 75% belief that Ethereum will rebound and reach a new all-time high of $5,000 by year-end. However, with inflation expectations and potential shifts in the Fed’s policy trajectory still uncertain, the path forward remains volatile and unpredictable for both Bitcoin and the broader crypto market.
