Bitcoin Tumbles Below $110,000 as Rally Fades Amid Market Uncertainty

Bitcoin fell below $110,000 for the first time in over six weeks on Monday, erasing its post-Powell rally as profit-taking and a massive whale sell-off triggered a market-wide correction.

The cryptocurrency dropped to $109,317, a 2.9% decline in 24 hours, marking its lowest level since July 9. The slide follows a brief surge on Friday after Fed Chair Jerome Powell signaled a potential rate cut.

Analysts attributed the reversal to a combination of factors. “The positive sentiment from Powell’s speech faded as investors reassessed the timing of cuts,” said Rachael Lucas, a crypto analyst at BTC Markets. The downturn was exacerbated by a single entity offloading 24,000 BTC (worth ~$2.6 billion), sparking heavy liquidations in derivatives markets.

Adding to the uncertainty, former President Donald Trump announced the firing of Fed Governor Lisa Cook, raising fresh concerns over the central bank’s political independence.