Bitcoin Dips Below $110,000 Amid Fed Rate Cuts and Market Uncertainty

Bitcoin has experienced a significant price decline, falling below key thresholds such as $111,000 and $110,000, signaling heightened volatility and investor uncertainty in the cryptocurrency market. This drop is attributed to a combination of macroeconomic headwinds including concerns over inflation and interest rates, profit-taking by investors, technical market corrections, and regulatory speculation. The Federal Reserve's recent quarter-point rate cut, which marked its second reduction this year, contributed to market volatility, with Bitcoin and other major cryptocurrencies like Ethereum seeing notable declines. Despite the overall pullback, certain altcoins showed gains, while large liquidations occurred, highlighting ongoing selling pressure particularly from long-term Bitcoin holders. On-chain analysis reveals Bitcoin struggling to surpass critical cost-basis levels, indicating weakened demand and increased risk amid subdued volatility and potential Federal Reserve hawkishness. Investors are advised to adopt cautious risk management strategies, closely monitoring support and resistance levels as the market remains susceptible to external shocks and rapid shifts in sentiment.