Bitcoin (BTC) has plunged approximately 18% from its recent all-time high of $126,000, briefly dipping below $100,000 earlier this week, now stabilizing at $103,121, up 1.31% in the last 24 hours, per COINTURK NEWS and. Deribit data shows $40B in total open interest for BTC options, with a surge in put options at $80,000 ($1B+) and $90,000 ($1.9B), indicating traders hedging against further declines, per. November and December expiries at $110,000 dominate trading volume, but the put/call ratio tilting bearish reflects cautious sentiment amid leveraged unwinding, per.
Fed Chair Jerome Powell’s recent comments, signaling no urgency for December rate cuts and a “careful approach” to monetary policy, have chilled risk assets, with BTC dropping 2.78% to an intraday low of $112,709, per. QCP Capital attributes the decline to over $5.2B in spot Bitcoin ETF outflows over four trading days, eroding a key support pillar, per. Ethereum (ETH) shed over 5% to $4,070, testing $4,200 support, per. CoinGlass reports over $1B in long liquidations due to liquidity constraints, amplifying the sell-off, per. Ecoinometrics warns that lingering near $100,000 could trigger more ETF withdrawals and selling pressure, per.
The correction aligns with broader macroeconomic caution, as Powell’s hawkish tone—contrasting market expectations for a 25 bps cut in December—has trimmed rate cut probabilities to 85%, per CME FedWatch. Vincent Liu of Kronos Research notes investors are in “wait-and-see mode,” with BTC likely consolidating in a narrow range until clearer policy direction emerges, per. Short-term volatility persists, with $360M in weekly crypto ETP outflows, per CoinShares, and BTC’s sensitivity to monetary policy amplifying the downturn, per. ETH’s steeper drop highlights its correlation to risk assets amid fading institutional appetite, per.
Analysts like Peter Chung from Presto Research eye Powell’s Jackson Hole speech on August 22, 2025, as a pivotal event: a dovish tilt could rally BTC to $120,000, while hawkish signals may push it toward $100,000, per. BTC support at $112,000 and resistance at $120,000 are key; a break below could test $100,000, per TradingView. Investors should monitor ETF flows via SoSoValue and FOMC minutes on federalreserve.gov. Dollar-cost averaging into BTC with stop-losses below $112,000, or diversifying into USDC, hedges risks, per. Follow @TheBlock__ on X for updates. Despite the dip, BTC’s $2.02T market cap and $65B daily volume suggest resilience, with potential for $150,000 by 2026 if policy eases, per Techopedia.
