Bitcoin 
$78,415 experienced a significant market fluctuation as it dipped below the $110,000 threshold for the first time in over six weeks. According to CryptoAppsy’s data, the prominent cryptocurrency dropped to $108,652, a decline of over 2% in the past 24 hours, marking its lowest level since July 9. Last week’s gains, prompted by Federal Reserve Chairman Jerome Powell’s hint of a September rate cut during his speech at Jackson Hole, were short-lived, giving way to profit-taking as the new week began. The market exhibited a strengthening trend of risk aversion.
Reasons Behind Bitcoin and Crypto Market Downturn
BTC Markets analyst Rachael Lucas attributed the price pullback to profit-taking, technical resistance, and shifting interest rate expectations. Bitcoin’s attempt to reach $117,000 on Friday, before retracing, signaled weakening momentum with the formation of a lower peak. The optimism spurred by Powell’s speech quickly dissipated as traders reconsidered the timing and likelihood of interest rate cuts.
Lucas also noted reports of a large wallet selling about 24,000 BTC (around $2.6 billion), triggering a chain of liquidations in derivative markets. This development exacerbated pressure on prices amid declining market depth and weakened risk appetite.
Prevailing Market Risk Aversion
The announcement on Monday by U.S. President Donald Trump of the removal of Fed Governor Lisa Cook fueled questions regarding the central bank’s political independence, thereby contributing to broader uncertainty. According to Presto Research analyst Rick Maeda, the $105,000 level remains a critical support point, representing the June breakdown zone, while $100,000 serves as both a psychological threshold and a key option usage level. Failure to maintain support could increase the risk of forced deleveraging, with the $118,000–$120,000 range continuing as resistance until macroeconomic clarity emerges.
The risk aversion trend extends across the cryptocurrency space without discrimination. Ethereum 
$2,475, for instance, dropped by 7.4% during the night to settle at $4,371, after briefly exceeding $4,900. Other major cryptocurrencies faced declines as well, with XRP falling 4.8% to $2.87, Solana 
$103 losing 9.85% to hit $187.7, and BNB decreasing by 4.25% to $838. Lucas highlighted that liquidations surpassed $900 million in a single session. Maeda added that CoinShares data revealed an outflow of $1.43 billion from cryptocurrency-based investment products last week, while stablecoin inflows remained flat, indicating a general risk reduction more than internal market rotation.
