Bitcoin fell below $110,000 as traders reacted to mixed U.S. macro data expectations and political turmoil that may alter the Federal Reserve’s policy path. Short-term selling, amplified by weekend liquidity, pushed BTC lower with large long liquidations and heightened volatility ahead of key GDP and PCE releases.
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Price drop: Bitcoin slid 2.8% to $109,882 with over $940 million in liquidations.
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Political risk: The firing of a Fed governor and market reaction increased uncertainty for rate decisions.
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Macro risk: Revised GDP and core PCE prints this week could change September rate-cut expectations.
Bitcoin fell below $110,000 after political shocks and looming U.S. GDP/PCE data; track risks and prepare for volatility — read expert analysis and next steps.
What caused Bitcoin to fall below $110,000?
Bitcoin fell below $110,000 as traders rotated out of risk ahead of U.S. GDP and core PCE data and reacted to political developments affecting the Federal Reserve. Thin weekend liquidity amplified moves, producing large long liquidations and pushing price to $109,882 on Monday.
How did liquidations and market structure amplify the move?
Liquidations topped $940 million over 24 hours, led by long positions, according to CoinGlass data. Thin weekend order books magnified selling. Short-term holders faced stop-loss cascades near the average cost basis for recent buyers, increasing alarm among spot and derivatives traders.
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Political actions that affect Fed governance can change market expectations for rate cuts. The recent dismissal of a Fed governor and related accusations increased perceived policy risk. Market volatility rose as the U.S. dollar index briefly shed 1% before stabilizing at 98.32, and U.S. equity futures fell.
Traders are focused on revised Q2 GDP and year-over-year core PCE inflation. Economists expect GDP to be revised to 3.1% from 3.0% and core PCE to tick up from 2.8% to 2.9% (MarketWatch). A softer growth print or higher-than-expected inflation could change the Fed’s rate path and market sentiment.
If the Fed signals a delay in rate cuts, risk assets could see extended weakness. Historically, failure to hold above recent investor cost bases (around $110,800) has preceded multi-month weakness, according to on-chain analytics providers such as Glassnode.
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Source: https://en.coinotag.com/bitcoin-drops-below-110000-as-u-s-economic-data-and-political-turmoil-could-influence-fed-policy/
