Bitcoin dips below $116,000, intraday low hits $114,828 amid fading Fed rate-cut hopes and geopolitical tensions.
Key Takeaways:
- Bitcoin dropped approximately 2.3%, going south to an intraday low of about $114,828, before modestly rebounding.
- Elevated U.S. inflation data dampened expectations of aggressive Federal Reserve easing, pushing markets to price in more conservative rate-cut timelines.
- Geopolitical tensions like unresolved diplomatic dynamics between U.S. and Russia affected market sentiment ahead of important meetings.
Bitcoin (BTC), the world’s largest cryptocurrency, made a significant pullback from near all-time highs above $124,000 to a sharp intraday low of $114,828 before moving sideways around $115,500 as of this writing, demonstrating renewed volatility across the broader crypto market.
Other tokens also declined Monday, with Ethereum (ETH) pulling back further from near-record-high range.
What’s driving the drop?
As highlighted in Investing.com, the dump coincided with two major forces: fading expectations for big Federal Reserve cuts and rising geopolitical risks, particularly unresolved U.S.–Russia tensions.
Markets reacted to stronger-than-expected U.S. producer price index data, which diminished hopes for deeper Federal Reserve rate cuts. Investors now anticipate only a modest 25 basis point reduction instead of a half-point, reducing tailwinds for risk assets like Bitcoin.
At the same time, the fallout from the recent U.S.–Russia summit where Ukraine was discussed without breakthroughs has heightened investor caution. With further engagements planned in Washington, markets remain on edge.
Wider Crypto Market Mirrors Bitcoin Pullback
The pullback was not limited to BTC. Ethereum fell nearly 5% in 24h, trading around $4,263.12. Other cryptos like XRP, Solana (SOL), and Cardano (ADA) also logged losses.
BTC currently trades at $115,314, down 2.6%, with an intraday low of $114,828 and high of $118,514, per TradingView.
Analysts Weigh in on the Correction
Market observers point to Fed policy as the key driver. Analysts stressed higher inflation readings “raised concerns the Federal Reserve may delay anticipated interest rate cuts, reducing the appeal of risk-on assets like crypto.”
Others remain optimistic, noting BTC may be setting up for the “next pump” via an emerging double-top pattern.
What’s Next: $115K Emerges as a Key Support Zone
Technically, $115,000 is now key support. If BTC holds above it, a rebound is likely, especially if Fed easing expectations revive. Failure could spark accelerated selling, pulling BTC closer to $110,000 or lower.
Summary
Bitcoin slid below $116K, hitting a low of $114,828 amid fading Fed cut hopes and renewed U.S.–Russia geopolitical tension. Ethereum and alts mirrored the pullback, highlighting crypto’s vulnerability to macro forces.
The $115K level has become critical support; holding it could stabilize BTC and spark a rebound if easing expectations improve. Conversely, breaking down risks deeper correction toward $110K. Traders should watch Fed policy updates and geopolitical headlines as catalysts for the next move.
