Bitcoin Drops Sharply Below $113K | Crypto News

Bitcoin Loses $113,000 Amid Inflation Concerns

On August 20, risk assets continued to slide, with Bitcoin falling 3.5% to around $113,200, marking its first drop below $113,000 since early August.

Ethereum also retreated sharply to around $4,100, down 4.6% in 24 hours, while XRP and Solana fell 6.7% and 3.5%, respectively.

Bitcoin has been declining steadily since reaching its recent peak of $124,128 last week.

Key Reasons Behind Bitcoin’s Decline

According to analysts, this correction is driven by:

Inflation concerns: July’s CPI rose 2.7%, above forecasts and well above the Fed’s 2% target.

Rising bond yields: Higher yields are pulling money out of risk assets like crypto.

Profit-taking pressure: Following Bitcoin’s new high, many leveraged positions were liquidated, totaling $559 million, mostly long trades.

Geopolitical and trade tensions: New tariffs and ongoing trade disputes have further dampened market sentiment.

The Fed and Upcoming Focus

Markets are closely watching:

Fed meeting minutes to be released Wednesday, revealing monetary policy outlook.

Jobs and manufacturing data due Thursday.

Remarks from Fed Chair Jerome Powell at the Jackson Hole Economic Symposium on Friday.

Although the Trump Administration has pushed for rate cuts, most policymakers remain firm on keeping rates at 5.25% – 5.50% given persistent inflation.

Stock Market Also Declines

Alongside crypto, major stock indexes also fell, with the S&P 500 and Nasdaq down 0.6% and 1.4%, respectively, underscoring weakening risk sentiment across markets.


Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.