Bitcoin Plunges Below $113K: Crypto Markets Brace for Impact as Dominant Asset Stumbles

Digital asset markets hit turbulence as Bitcoin's sharp decline below the $113,000 threshold sends shockwaves through the ecosystem. The sudden drop—coming amid what many considered a sustained bull run—catches traders off guard and triggers cascading liquidations across derivatives platforms.

Traders Scramble for Position

Margin calls flash across screens as leveraged positions unravel faster than a rug pull on a shady DeFi project. Exchange order books show intensified selling pressure, with bid support levels crumbling like a poorly coded smart contract.

Institutional players pause accumulation strategies while retail investors face the classic crypto dilemma: buy the dip or cut losses. The volatility spike reminds everyone that in crypto, ATHs can turn into ATLs faster than you can say 'not your keys, not your coins.'

Market analysts point to typical culprits—regulatory murmurs, macroeconomic shifts, or just the market being the market. Because when traditional finance sneezes, crypto gets pneumonia—with extra leverage.

As the dust settles, one truth remains: in a world where 'number go up' isn't guaranteed, even six-figure Bitcoin can't escape the oldest rule in finance—what goes up must come down. Especially when Wall Street's playing with rocket fuel instead of gasoline.

Crypto Market Crash Triggers $450M in Liquidations

The downturn in BTC spilled across the broader crypto market. Over $450 million in positions were liquidated in just one day, according to CoinGlass. Ethereum led with $180 million in losses, while Bitcoin accounted for more than $100 million. Altcoins such as XRP, SOL, and DOGE also suffered steep liquidations. The wave of forced selling stained the market in red, shaking out both retail traders and Leveraged positions.

ETFs Add to Crypto Market Pressure

ETFs, once a major source of inflows, are now amplifying the sell-off. The Bitcoin spot ETF saw net outflows of more than $120 million in a single day. Ethereum ETFs were hit even harder, with nearly $200 million flowing out. This signals institutional investors are taking profits or reducing risk ahead of Powell’s remarks. The SEC’s delay of an XRP ETF decision to October also added to the uncertainty. Without ETF inflows, the crypto market loses one of its strongest recent support pillars.

Is BTC Price Manipulated? Traders Call Out Whales

Some analysts argue that Bitcoin’s latest dip is not purely macro-driven. Traders point to unusual liquidity shifts on major exchanges. Large bid orders appear and vanish quickly, dragging BTC price lower in what looks like manipulation. Well-known figures like “Spoofy the Whale” and the “Notorious B.I.D.” are names used to describe such tactics. If true, this manipulation may deepen volatility, especially as BTC moves toward critical zones at $112K and $120K.

What’s Next for Bitcoin and the Crypto Market?

Despite the pain, some see hope in the current pullback. Analysts compare it to past bull runs in 2017 and 2021, when mid-cycle corrections paved the way for new highs. If Powell confirms rate cuts in September, liquidity may return and fuel another BTC rally. Corporate adoption also continues, with nearly 300 public and private entities now holding Bitcoin. This long-term trend shows growing confidence, even as the short-term crypto market looks shaky. For now, all eyes remain on Powell’s Jackson Hole speech—and its potential to decide Bitcoin’s next big move.