Bitcoin crashes below $115K amid rising panic selling, dormant wallet movements, and fears of deeper losses across altcoins and derivatives.
The cryptocurrency space is shaken by a sudden decline as Bitcoin, the top digital token, fell below the $115,000 level for the first time in weeks. Since its peak of $123,218 in mid-July, BTC has lost almost $9,000 in value, which has spurred widespread sell-offs across the crypto sphere.
The overall market capitalization has fallen to $3.74 trillion, wiping out more than $40 billion within 24 hours. Other altcoins such as Ethereum, Solana, and Binance Coin have also experienced significant losses, with investors rushing to re-evaluate their positions in light of increasing uncertainty.
Technical and Macro Factors Drive the Decline
Analysts attribute the decline to a mix of technical and macroeconomic considerations. Profit-taking by short-term investors, combined with major withdrawals from Bitcoin ETFs, has been putting pressure on the decline.
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Furthermore, new U.S. economic reports and speculation on Federal Reserve rate reductions have unsettled risk assets, which have called for safer havens. Whale activity has also spooked the market, with sleeping wallets waking up to transfer huge amounts of BTC to exchanges—usually a sign that there will be massive sell-offs.
Possible Rebound, Risks Persist
Even with the bearish sentiment, a rebound in the near term is some market observers’ prognosis. With longs being squeezed out and short interest increasing, the circumstances may be set for a short squeeze that would boost prices temporarily.
That said, if Bitcoin is unable to recover the $116K mark, technical studies indicate a possible fall to $104K or even $92K. With market volatility in its grip, investors are advised to keep their guards up and watch closely for macroeconomic events that will define the next leg of the crypto cycle.