- Crypto markets sold off Friday, wiping out most weekly gains — BTC fell to ~$115.5K, ETH to ~$4.45K, with SOL and DOGE hit hardest.
- Selling followed the BoJ’s ETF unwind, profit-taking after the Fed’s rate cut, and options traders hedging downside, triggering liquidations.
- Despite the dip, BTC’s higher-low pattern remains intact, with $115K holding as key support and $118K still the breakout level to watch.
After a week of steady gains and growing optimism, crypto markets took the proverbial elevator down on Friday, wiping out much of the week’s progress. Bitcoin, which nearly broke above $118,000 on Thursday following the Federal Reserve’s first rate cut of the year, fell back to roughly $115,500 — down around 2% in the past 24 hours and now flat for the week.
Ethereum also saw a sharp pullback, slipping from the $4,700 area to about $4,450, a drop of more than 3% over the same period. Some of the strongest performers earlier in the week, including Solana and Dogecoin, were hit hardest. Solana shed more than 5% on the day, while Dogecoin tumbled more than 6%, erasing nearly all of their week-to-date gains.
Macro and Market Drivers
Part of today’s move appears to be broader risk-off sentiment across global markets. The Bank of Japan’s historic ETF unwind triggered selling pressure across equities and crypto, reminding traders that liquidity can still tighten even in a rate-cutting environment. Meanwhile, U.S. traders continue to digest the Fed’s shift toward a cutting cycle and what it means for risk assets.
There’s also been an uptick in options activity, with traders buying downside protection on Bitcoin after Thursday’s rally failed to hold. This likely contributed to cascading liquidations across leveraged long positions, accelerating the move lower.
Technical Perspective
Despite the pullback, technicians see reason for optimism. Bitcoin continues to print a series of higher lows dating back to early September, forming a textbook ascending triangle with resistance near $118,000. Each dip has been met with strong buying interest, keeping the broader uptrend intact.
As long as Bitcoin holds support near the $115,000–$115,500 range, bulls maintain the advantage, and many traders are eyeing a breakout above $118,000 as the next major catalyst. For now, though, crypto investors are reminded that even in a strong trend, corrections can be sharp and fast — and often shake out weak hands before the next leg higher.
