Why is Bitcoin down today?
Bitcoin retreats to $107,770 after brief rally above $110,000
The cryptocurrency market experienced another sharp reversal this week despite a cooler-than-expected U.S. CPI print, which initially pushed Bitcoin (BTC) above $110,000.
The brief rally gave way to a 2.7% price decline, closing BTC at $106,687, with the coin now hovering near $107,770. The retreat comes amid rising global uncertainty, as investors digest mixed macroeconomic signals that are impacting both crypto and traditional risk assets.
Key reasons behind the crypto market pullback
Analyst Anton Kharitonov identifies several interconnected factors driving the latest sell-off:
-Global market jitters: A growing risk-off mood across equity and commodity markets has pushed investors out of volatile assets like crypto, particularly in the absence of strong upside momentum.
-Weak inflation outlook: While CPI came in cooler than expected, it raised fears of slowing economic growth rather than boosting confidence in a dovish Fed pivot.
-Profit-taking at highs: With BTC nearing its all-time high of $112K in May, many traders opted to lock in gains, triggering sell pressure.
-Political uncertainty: Crypto’s increasing role in U.S. political discourse—especially around the 2024 presidential campaign—has fueled regulatory ambiguity, creating caution among institutional players.
-Massive liquidations: Over $300 million in long positions were liquidated in 24 hours, compounding losses and accelerating the correction across the board.
Kharitonov says:
"The Bitcoin correction is unlikely to last long. Whales will buy the dip, and we may see new highs as early as this month."
Altcoins mirror Bitcoin’s decline amid broader market caution
Ethereum (ETH), which briefly hit $2,878, dropped 1.6% to $2,720, with current levels near $2,730, representing a 2.8% dip. XRP and Dogecoin (DOGE) have also trended lower, mirroring the move in Bitcoin and reflecting the market’s fragile sentiment. DOGE, in particular, has underperformed, falling as much as 7% amid thinning liquidity and fading speculative enthusiasm.
What’s next for crypto prices?
Despite the short-term correction, many analysts remain constructive over the medium term, especially with ongoing ETF inflows, institutional expansion, and growing blockchain adoption. However, in the near term, markets are likely to remain volatile, driven by macroeconomic data, Fed commentary, and global political developments. Until a clearer narrative emerges, sideways or choppy action may dominate, offering traders both risk and opportunity.
Recently we wrote that BitMEX CEO Arthur Hayes has issued a warning to crypto investors, predicting heightened volatility ahead as President Donald Trump renews his push for unilateral tariffs, with a key deadline looming on July 9.
