Bitcoin’s price plunged to $115,100 early Friday marking its lowest level in two weeks. The sharp drop—over 2.5% in the last 24 hours—is raising concerns that the leading cryptocurrency may be entering a prolonged bearish phase.
Why is Bitcoin crashing?
The crash follows a wave of institutional selloffs, most notably Galaxy Digital’s $9.5 billion BTC transfers, which triggered widespread concern and liquidation among leveraged traders. Bitcoin ETFs also recorded net outflows, further contributing to downward pressure.
Key factors behind today’s BTC crash:
- Price low: $115,100
- 24-hour drop: -2.6%
- Institutional unloading: $9.5B in BTC transfers (Galaxy Digital)
- ETF redemptions increasing
- Whale wallet inflows signaling further selling
- Federal Reserve hawkish stance delaying rate cuts
The combination of macroeconomic stress and market-specific triggers has accelerated the decline, pushing BTC below the critical $118K support level it had consolidated around for much of July.
Altcoins stay resilient as Bitcoin weakens
Interestingly, while Bitcoin faltered, several altcoins like Ethereum (ETH) and XRP managed to show mild gains:
- ETH: $3,718.78 (▲ 1.71%)
- XRP: $3.12 (▲ 1.32%)
- SOL: $180.71 (▼ 3.08%)
- DOGE: $0.2316 (▼ 2.94%)
This divergence has led some analysts to suggest that altcoins may outperform Bitcoin in the near term, especially if BTC continues to consolidate in a bearish range.
Will Bitcoin fall further?
Technical indicators suggest that Bitcoin could slide further if it fails to reclaim the $118K level soon. If selling continues, BTC may test deeper support in the $112K to $110K range—a level not seen since early June.
Chart signals to watch:
- Bollinger Bands: Tightening, indicating reduced volatility and a pending breakout
- RSI: Falling sharply, showing weakening momentum
- CMF & OBV: Turning bearish, confirming declining buying pressure
The next few days, particularly the upcoming weekend, will be critical for BTC’s short-term trend. A close above $118,500 could initiate a bounce toward $124K–$126K, but further downside could open the door to a prolonged correction.
Macro pressure adds to market anxiety
The broader crypto market is also reacting to macro signals. A weaker Dow Jones, which fell 0.70% Thursday, combined with growing doubts over monetary easing, has weighed on risk assets. Bitcoin, often considered a hedge against inflation, appears vulnerable to shifting investor preferences amid rising real yields.