- Bitcoin plunged below $109K, marking its lowest level since July as inflation data weighed on crypto and stocks alike.
- Ethereum dropped 6% to $4,295, while XRP and Solana also slipped, triggering $535M in liquidations across the market.
- Analysts warn September could bring more volatility, though traders still see ETH hitting $5K before year-end.
Bitcoin tumbled below $109,000 on Friday, dragging much of the crypto market down with it. The drop followed fresh inflation data that rattled traders and pushed risk assets lower. By Friday morning in New York, Bitcoin was trading at $108,617, its weakest level since early July, according to CoinGecko.
In just 24 hours, BTC shed nearly 4%. Looking back over the past month, the decline stretches closer to 8%. Earlier this August, Bitcoin hit a new all-time high at $124,128, but it’s now sitting 12% under that peak. Ethereum didn’t fare much better—ETH slipped to around $4,295 after losing 6% in a single day, erasing its weekly gains. That’s about 13% below the record $4,946 it set just last weekend.
Liquidations Pile Up as Crypto Falls
The sudden dip has hammered futures traders who were betting on higher prices. Data from CoinGlass shows over $446 million in long positions were liquidated within 24 hours, with total liquidations—shorts included—topping $535 million. XRP slid 6% to $2.84, while Solana fell 3% to $209, cooling off after briefly touching $217, its highest price in six months.
Inflation Data Adds Pressure
The trigger came from the U.S. personal consumption expenditures (PCE) index, which revealed core inflation running at 2.9% in July. While in line with expectations, the figure still came in higher than June, stoking concerns the Federal Reserve may hold rates higher for longer. Stocks took a hit alongside crypto, with the S&P 500 down 0.6% and the Nasdaq slipping 0.9%.
What Comes Next for Bitcoin and Ethereum?
Historically, September has been a rough month for both Bitcoin and equities, and some analysts warn the current pullback could deepen if macro headwinds persist. Still, sentiment around Ethereum remains upbeat in some corners. On prediction platform Myriad Markets, traders are giving ETH a 75% chance of climbing past $5,000 before the year ends.
For now, though, Bitcoin’s slide under $109K has put the market back on edge, reminding traders just how quickly momentum can flip in crypto.
