Bitcoin Plunge to $113k Wipes $343M From Crypto Markets—Here’s Why Traders Aren’t Panicking

Crypto markets just got a cold shower—Bitcoin’s drop to $113k liquidated $343M in leveraged positions. But veterans? They’ve seen this movie before.

The domino effect: Altcoins bled harder than BTC, as usual. No surprises there—weak hands fold fastest when the king stumbles.

Silver lining playbook: This ‘dip’ still leaves Bitcoin up 300% from its 2024 lows. Try getting that ROI from your bank’s ‘high-yield’ savings account.

Wall Street whispers: Some hedge funds are quietly accumulating at these levels. Meanwhile, retail traders keep buying meme coins against their better judgment.

The crypto pendulum always swings—just ask the guys who sold ETH at $900 in 2020. Today’s panic could be tomorrow’s ‘I should’ve bought more’ regret.

Bitcoin Falls, Others Follow

BTC’s price has dipped to the $113,000 level for the first time in nearly one month. According to CoinGecko’s BTC data, the asset is down 0.8% in the daily charts, 4% in the weekly charts, and 4.4% in the 14-day charts. BTC has maintained some gains in the monthly and yearly charts, rallying 3.6% and 104%, respectively.

Bitcoin (BTC) and the larger cryptocurrency market dip was likely triggered by the Federal Reserve’s decision to keep interest rates unchanged. The worse-than-expected jobs data may have further spooked market participants. According to the Bureau of Labor Statistics (BLS) nonfarm payroll increased by just 73,000 for the month. The lackluster figures prompted President Trump to fire BLS Commissioner Erika McEntarfer. The agency is now looking for a new candidate to replace McEntarfer.

BTC’s dip also follows on the heels of President Trump’s new tariff spree. Global trade wars and uncertainties around the tariff situation has caused much confusion among investors. BTC and the larger crypto market among among the riskiest assets, and have faced the brunt of the matter.

Many entities anticipate the Federal Reserve to cut interest rates in September. According to CME FedWatch tool, there is a 85.4% chance that the Federal Reserve will drop interest rates by 25 basis points next month. Goldman Sachs, Wells Fargo, and Citigroup also believe that the Federal Reserve will cut rates in September.

Bitcoin (BTC) may experience a rebound if the Fed drops rates and borrowing becomes easier.