Bitcoin’s precarious dance below the $110,000 mark has reignited anxiety across the crypto landscape. On Monday, the digital currency giant stumbled back, trading at $109,700—its lowest in nearly two months. This downturn follows a short-lived rally propelled by Federal Reserve Chair Jay Powell’s dovish commentary at the Jackson Hole symposium last Friday. Despite a fleeting surge past $117,000, Bitcoin’s recovery was swiftly rebuffed, and the market is now feeling the tremors. As explored in All Eyes on Powell as Bitcoin Holds Below $113K: Crypto Daybook Americas, Powell’s influence on market sentiment remains significant.
Altcoins and the Ripple Effect
As Bitcoin faltered, the ripple effect was palpable across the crypto market. Ethereum’s ether, a heavyweight in its own right, nosedived close to 8%, finding itself under the $4,400 threshold. Other altcoins, usually market resilient, couldn’t escape the downturn either. Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and Chainlink (LINK) all saw losses ranging from 6% to 8%.
According to CoinGlass, Monday’s market turmoil resulted in nearly $700 million worth of liquidated leveraged positions, outpacing the Sunday flush. A staggering $627 million of this was from long positions, highlighting traders’ misplaced optimism for a market rebound. The numbers tell a sobering tale of a market on edge, teetering under the weight of its own expectations.
Historical Shadows and Market Sentiment
The timing of this slump is no mere coincidence. August’s end draws near, and September looms—historically a challenging month for the crypto market. CoinGlass data reveals that September typically sees Bitcoin and Ethereum dropping by 3.77% and 6.42% on average, respectively. This seasonal pattern adds another layer of uncertainty, raising questions about the market’s ability to withstand further shocks. For more context on market reactions to key events, see OKB Defies Altcoin Crash, Bitcoin Slips to $112K as Markets Brace for Powell Speech: Your Weekly Recap.
“September has always been a tricky month,” notes crypto analyst Sarah Liu. “The market seems to have this seasonal malaise, which tends to exacerbate any underlying weaknesses.” Her comments echo the cautious sentiment prevailing among traders who are now closely watching for any signs of stabilization or further volatility.
Looking Ahead: Unanswered Questions
As we move forward, the crypto community is left grappling with a host of unresolved questions. Will Bitcoin find a new support level, or are we witnessing the start of a deeper correction? Can altcoins decouple from Bitcoin’s influence and chart their own course? The answers remain elusive, and the market’s next moves are anything but predictable.
For now, traders and investors are keeping a wary eye on market developments, acutely aware of the potential for further disruptions. As the calendar flips to September, the crypto market stands at a crossroads, its path forward shrouded in uncertainty. The coming weeks will be crucial in determining whether this is merely a temporary setback or the beginning of a more significant downturn.
Source
This article is based on: Bitcoin Tumbles Back Below $110K as Crypto Bounce Fails, Ether Plunges 8%
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
