Bitcoin Volatility Alert: Plunge Below $116K Marks Largest Hourly Drop in 14 Days—Is $114K Next?

Bitcoin just got slapped with its most violent hourly rejection since mid-July—now flirting with levels not seen since the last institutional FOMO wave. Traders are sweating as $116K support cracks under pressure.

Blood in the streets or buying opportunity?

The king of crypto isn’t dead—it’s just taking a smoke break after another round of leveraged longs got liquidated. (Wall Street analysts, meanwhile, are still trying to explain why they called it a 'store of value.')

Key levels to watch: A sustained break below $114K could trigger algorithmic sell avalanches. But let’s be real—this is Bitcoin. By the time you finish reading this, it’ll probably be pumping again.

Markets remain cautious

Bitfinex analysts framed the macro picture as mixed. Gross domestic product (GDP) for the second quarter rebounded to 3% annualized after a 0.5% contraction in the first quarter. 

Yet, much of the improvement reflected lower imports rather than robust domestic demand, according to a note from Bitfinex analysts. Final sales rose just 1.2%, while Core Personal consumption expenditures (PCE) eased to 2.5% quarter-over-quarter, and 2.9% year-over-year.

That backdrop leaves the Fed inclined to hold steady amid “persistent inflationary risks.”

With the Fed softening its confidence and highlighting elevated uncertainty, Bitfinex analysts highlighted that crypto’s relief bid lacked fuel. 

If policymakers continue to flag sticky inflation or question the quality of GDP growth, they expect a measured downside. As a result, Bitcoin could probe $114K or lower, with ETH also softening.

The analysts warned that in the post-FOMC window, traders should watch order-flow response, volatility skew shifts, and funding-rate dynamics for confirmation of direction.