Catenaa, Friday, August 29, 2025-Bitcoin fell to roughly $110,000 on Tuesday, marking its lowest level in seven weeks and dragging the broader crypto market down.
More than $900 million in leveraged positions, mostly long trades, were liquidated in the past 24 hours as derivatives markets experienced forced unwinds and short-dated volatility spiked ahead of key US economic releases.
The GMCI 30 index showed a 3% decline across top crypto assets. Bitcoin’s daily volatility jumped from 15% to 38%, while Ethereum volatility surged from 41% to 70%.
Analysts warned the market may continue downward, with BTC potentially retesting $100,000 and ETH approaching $4,000 by late September. Options activity indicated elevated demand for downside protection, reflecting investor caution.
Leverage adjustments were uneven. BTC aggregate futures open interest fell 2.6%, worth nearly $2 billion, while long-side funding payments rose 29% to $3.6 million.
Onchain daily active addresses dipped below trend despite rising transfer volumes, signaling short-term repositioning rather than organic demand.
Analysts highlighted fragile technical levels near $103,700 and $100,800, suggesting potential risk to the bull-cycle market structure if lost.
Institutional investors stepped in amid the sell-off. Strategy purchased 3,081 BTC for $357 million, and BitMine Immersion expanded its ETH treasury by $2.2 billion.
Spot ETH ETFs also saw $444 million in daily inflows. The market remains sensitive to U.S. monetary policy, with the CME FedWatch tool showing an 84.3% chance of a September rate cut amid uncertainty over central bank independence.
