Bitcoin (BTC) took a nosedive below the $110,000 mark for the first time in over six weeks, as traders cashed in on gains from the last rally while the broader market remained full of uncertainty.
At 06:00 UTC on August 26, 2025, the world's top cryptocurrency was priced at $108,686. It was Bitcoin's lowest point since July 9, according to the Hodlfm's bitcoin price page.
Impact of Jerome Powell's Speech and Market Correction
This slump followed a short rally last Friday when Federal Reserve Chair Jerome Powell hinted at a possible interest rate cut at Jackson Hole, fueling anticipation for the September FOMC meeting.
Rachael Lucas, a crypto analyst at BTC Markets, said:
“The correction is due to a mix of profit-taking, technical resistance, and changing rate expectations. Bitcoin briefly touched $117,000 on Friday before reversing, with a lower high forming, signaling momentum loss.”
That post-Powell optimism quickly turned into caution as investors re-evaluated the likelihood and timing of a rate cut. Adding fuel to the fire, a whale offloaded 24,000 BTC (about $2.6 billion), triggering a series of liquidations across derivative markets.
Political Uncertainty and Fed Leadership Changes
But it didn’t stop there. U.S. President Donald Trump dropped another bombshell on Monday, announcing the firing of Federal Reserve Governor Lisa Cook, stirring more worries about the central bank's political independence.
Rick Maeda, a research analyst at Presto Research, pointed out:
“Key levels are now at $105K (the June breakout zone) and $100K, a psychological barrier and heavy options strike. A clean break below $100K could lead to forced deleveraging, while the upside remains capped near $118-120K until macro conditions settle.”
Ethereum and Altcoin Declines
Elsewhere, Ethereum also took a dive, falling 7.4% to $4,371 after briefly soaring above $4,900 earlier in the day. Other major altcoins didn’t fare much better, with XRP dropping 4.8% to $2.87, Solana tumbling 9.85% to $187.7, and BNB slipping 4.25% to $838.
Lucas shared,
“In the broader crypto market, liquidations hit $900 million in a single session. Capital that had been rotating between Bitcoin and Ethereum is now shifting toward a more cautious approach.”
Maeda also highlighted that CoinShares reported $1.43 billion in ETP outflows last week, ending a two-week streak of inflows.
“Alts sold off faster than major coins, and stablecoin inflows remained flat, signaling a risk-off trend in crypto rather than capital merely shifting within the sector,” he said.
Alex Shepel
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
