Bitcoin Price Slides Below $112K as Traders Brace for Key U.S. Inflation Data
Bitcoin fell back under pressure on Thursday, slipping below the $112,000 level as global investors positioned ahead of a critical U.S. inflation reading that could shape the Federal Reserve’s next interest rate moves.
The world’s largest cryptocurrency by market capitalization (BTC-USD) was down 0.7% at $111,786 (£83,022 / $111,165) at the time of writing, after briefly testing $114,000 on Wednesday. The rebound proved short-lived, with sellers regaining control during Asia trading hours.
Forced liquidations add to volatility
This week’s downturn followed roughly $1.5 billion in forced liquidations, as highly leveraged traders betting on further gains were caught out. Thin liquidity and heavy speculation amplified the sell-off, dragging bitcoin from above $115,000 early in the week to the low $112,000 range within a day.
Fed caution dampens risk appetite
Investor sentiment has been cautious since Fed Chair Jerome Powell warned that there was “no risk-free path” on monetary policy. Powell and other officials reiterated that future decisions would depend heavily on data, reducing appetite for risk assets like cryptocurrencies.
Markets tracked by the CME FedWatch tool currently expect the Fed to cut rates from the 4.5%–4.75% range toward 3.5%–4.0% by year-end 2025, though the timing hinges on inflation and growth trends.
Traders eye upcoming data
Key U.S. economic releases on the radar:
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Thursday: weekly jobless claims and the final Q2 GDP reading
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Friday: the Fed’s preferred inflation gauge, the PCE price index
These reports could provide a clearer steer on how aggressively the Fed will ease policy.
Altcoins face steeper losses
| Crypto | Current Price | 24h Change | Notes |
|---|---|---|---|
| Bitcoin (BTC-USD) | $111,786 | ▼ -1.94% | Slipped under $112K support |
| Ethereum (ETH-USD) | $4,013 | ▼ -5.38% | Seven-week low |
| Solana (SOL-USD) | $150.20 | ▼ -6.46% | Steeper decline than BTC |
| Cardano (ADA-USD) | $0.54 | ▼ -2.7% | Under pressure |
| Dogecoin (DOGE-USD) | $0.19 | ▼ -5.76% | Memecoins weaker |
| XRP (XRP-USD) | $2.85 | ▼ -1.88% | Held steady |
Analysts warn of fragile support
Timothy Misir, head of research at BRN, said the Fed’s cautious stance comes against “sticky inflation risks” and resilient consumer demand. He also pointed to China’s efforts to expand sovereign gold reserves as part of a global de-dollarisation trend that could influence crypto’s role as an alternative asset.
ETF flows remain a critical factor. Bitcoin ETFs saw $241 million in net inflows on Wednesday, reversing recent outflows, while Ethereum ETFs continued to post redemptions totaling $79 million.
Misir warned that bitcoin remains vulnerable as it trades below the 0.95 Cost Basis Quantile, a level that historically triggers profit-taking. If support at $111,000 fails, he said the token could slide toward the $105,000–$90,000 range.
“Three near-term risks dominate: Bitcoin holding $111,000, Ethereum clinging to $4,000, and ETF flows,” Misir added. “Lose these, and momentum could accelerate to the downside. For now, bitcoin’s $111,115–$113,500 band defines the battleground.”
Bitcoin Price People Also Ask
Why is Bitcoin falling today?
Bitcoin dropped as traders unwound leveraged bets, leading to $1.5 billion in liquidations. Caution around U.S. inflation data and Federal Reserve policy has further pressured prices.
What is the PCE inflation index and why does it matter?
The Personal Consumption Expenditures (PCE) price index is the Fed’s preferred inflation gauge. A higher-than-expected reading could delay rate cuts, weighing on crypto markets.
Could Bitcoin fall below $100,000?
Analysts warn that if support at $111,000 breaks, Bitcoin could slide toward the $105,000–$90,000 range, especially if ETF inflows reverse.
Is Ethereum more at risk than Bitcoin?
Ethereum has underperformed in recent sessions, dropping 5% to a seven-week low. Persistent ETF outflows have made ETH more vulnerable than BTC.
