BTC Drops Below $110K on Fed, Regulatory Jitters
The cryptocurrency market is under pressure today, with Bitcoin (BTC) sliding below $110,000 amid a mix of macroeconomic, regulatory, and sentiment-driven headwinds.
- US Inflation & Fed Policy Uncertainty
- Traders are awaiting the US PCE index, a key inflation gauge for the Federal Reserve.
- A soft reading could fuel expectations of a September rate cut, while a strong print may dampen those hopes.
- Normally, rate cut optimism supports speculative assets, but risk appetite has cooled after President Donald Trump’s attempt to fire Fed Governor Lisa Cook, raising concerns over political interference in monetary policy.
Regulatory & Enforcement Actions
- The US Treasury’s FinCEN disclosed that US banks have been processing billions annually for suspected Chinese money launderers.
- The CFTC has opened a pathway for offshore exchanges to legally serve American clients.
- Sentiment also took a hit from the collapse of Kanye West’s YZY token, which plunged over 80%, erasing $74 million for 51,000 traders.
- Bitcoin (BTC): Testing a support zone between $110K–$112K; failure could send prices toward the $103K–$106K demand area. Resistance sits near $113,600. BTC last traded around $109,630, down 3.2%.
- Ethereum (ETH): Down 6% at $4,333, despite strong ETF inflows.
Market Snapshot
- Global crypto market cap: $3.86T (▼1.3%)
- ETF Flows: Spot Ether ETFs drew $1.83B in five days, dwarfing Bitcoin’s $171M, signaling a shift in institutional preference.
- Solana (SOL): Up 18% in a week; institutional adoption as a treasury asset supports a move toward $234, with firm support at $200.
- Altcoins: Mixed performance – ETH slipped on profit-taking, while XRP, BNB, HYPE, SOL, TRX, and ADA saw single-digit declines.
- Pyth Network (PYTH): Surged 80% after U.S. GDP data went live across eight blockchains.
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