Bitcoin Plunges Below $110,000 as Crypto Markets Enter Freefall

Digital assets hemorrhage value as panic selling grips cryptocurrency markets.

MARKET MELTDOWN

Bitcoin's sharp correction accelerates into full-blown capitulation, wiping out recent gains in a brutal cascade of liquidations. The flagship cryptocurrency breaches critical support levels that traders watched like hawks.

TECHNICAL BREAKDOWN

Market structure fractures under intense selling pressure. Order books thin out as algorithmic traders trigger stop-losses in domino-effect fashion. The velocity of the decline suggests institutional deleveraging rather than retail panic.

SECTOR-WIDE PAIN

Alternative cryptocurrencies follow Bitcoin's lead into the abyss. Major altcoins post double-digit percentage losses as correlation spikes to near-perfect levels. Even supposedly 'uncorrelated' DeFi tokens get caught in the downdraft.

REGULATORY SPECTER

Whispers of impending crackdowns circulate through trading desks. Banking channels tighten credit lines to crypto-native firms. The usual suspects in traditional finance nod sagely about 'speculative excess' while quietly increasing their Bitcoin allocations.

This isn't a dip—it's a hydraulic press. Yet somehow Wall Street still charges 2% management fees for underperforming the S&P 500.

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In late afternoon trading on Sept. 25, BTC was trading at $109,800, down 3% over the past 24 hours and sliding below the key support level of $110,000. Bitcoin is now down 12% from an all-time high of just over $124,000 reached in mid-August of this year.

The slide comes as large institutional investors and hedge funds turn bearish and sell their cryptocurrencies with stocks at an all-time high and macroeconomic uncertainty growing. Bitcoin and other crypto such as ethereum (ETH) also face a wave of options expirations as we approach the end of the third quarter, which could further pressure prices.

Other Digital Assets

Bitcoin wasn’t the only crypto in the red on Sept. 25. Ethereum is down 5% on the day and trading below the key threshold of $4,000. In August, ETH traded at a record high of just under $5,000. Dogecoin (DOGE) was down 6% on the day at $0.22.

A slump in crypto prices during September is not unusual. The month is typically the worst point in the year for digital assets, leading some investors to dub it “Red September.” Analysts say that while retail investors continue to hold crypto, institutions have turned more skittish amid signs of persistent inflation and a weakening U.S. labor market.

Is Bitcoin a Buy?

Most analysts don’t offer ratings or price targets on Bitcoin. So instead, we’ll look at the three-month performance of BTC. As one can see in the chart below, the price of bitcoin has risen 5.10% in the last 12 weeks.