Bitcoin May Be Testing Support After Brief Drop Below $113,000 Amid Inflation and Fed Uncertainty

  • Bitcoin fell below $113,000 for the first time since August 2, reversing a recent all-time high run.

  • Macro factors—rising Treasury yields, stronger CPI, and geopolitical risks—prompted broad risk-off flows.

  • Market data shows $559 million of positions closed, including $487 million of longs, increasing liquidation pressure.

Bitcoin price drop: Bitcoin fell below $113,000 amid rising yields and hotter CPI—read concise market analysis and key takeaways now.

What caused the Bitcoin price drop below $113,000?

The Bitcoin price drop was driven by a mix of macroeconomic jitters and position unwinding. Rising Treasury yields, a hotter-than-expected July Consumer Price Index, and profit-taking after Bitcoin’s $124,128 high combined with leveraged liquidations to push prices under $113,000.

How did macro data and market positioning affect crypto today?

Short-term selling followed stronger U.S. economic readings and a rise in yields. The Consumer Price Index for July rose to 2.7% year-over-year, with core CPI at 3.1%, keeping inflation above the Federal Reserve’s 2% target.

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Industry voices framed the move as a mix of factors. Joe DiPasquale, CEO of BitBull Capital, called the pullback “a mix of macro jitters and positioning after the recent run-up.” Juan Leon, Senior Investment Strategist at Bitwise Investments, attributed cascading liquidations and profit-taking to the drop.

Bitcoin moved in tandem with equities as investors reduced exposure to risk-on assets ahead of key economic reports and the Fed’s schedule. Major indices also dipped—S&P 500 down 0.6% and Nasdaq down 1.4%—amplifying cross-asset selling pressure on crypto.

Bitcoin traded around $113,200, down roughly 2.5% in 24 hours after hitting $124,128 last Thursday. Ethereum traded near $4,100, down about 4.6% from Monday. XRP and Solana fell approximately 6.7% and 3.5%, respectively.


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Source: https://en.coinotag.com/bitcoin-may-be-testing-support-after-brief-drop-below-113000-amid-inflation-and-fed-uncertainty/