Market Watch

Bitcoin Dips Below $110K Amid Fed Controversy and Upcoming Economic Data

Bitcoin is extending its weekend losses ahead of key macroeconomic events this week that could influence the U.S. Federal Reserve’s September rate cut decision. Bitcoin slid 2.8% to $109,882 on Monday with liquidations, primarily longs, over the past 24 hours, topping $940 million, according to CoinGlass data.

“Capital is rotating out of risk, with thin weekend liquidity amplifying swings,” Rachael Lucas, a crypto analyst at BTC Markets, told Decrypt. The recent drop has pushed Bitcoin below $110,800, or the average cost basis of investors who purchased the top crypto in the past three months. “Historically, failure to hold above this level has often led to multi-month market weakness and potential deeper corrections,” Glassnode cautioned in a post to X on Monday. The market volatility comes amid U.S. President Donald Trump’s firing of Federal Reserve Governor Lisa Cook.

The resignation letter posted on TruthSocial after the trading day ended cited “deceitful and potentially criminal conduct” over allegations she falsified documents relating to her primary residence. Eyes are now fixed on this week’s upcoming revised GDP figures for the second quarter on Thursday, with economists expecting the growth rate to be revised slightly higher to 3.1% from the initial 3% estimate.

Meanwhile, year-over-year core PCE inflation, which tracks changes in consumer spending, is forecast to show inflation re-accelerating, from 2.8% to 2.9%, according to MarketWatch data. A drop in growth and a larger-than-expected rise in inflation, however, could derail next month’s plans by the Fed, including future cuts this year, Decrypt was previously told.

Terron Gold

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