Bitcoin slides below $109,000 as investors react to trade frictions, developments in Venezuela, and expectations of an upcoming Fed rate cut.
The cryptocurrency market fell on Thursday, extending losses for a third consecutive day as investors remained cautious amid escalating geopolitical tensions and speculation over a Federal Reserve rate cut later this month.
Bitcoin (BTC) is changing hands at $108,500, down 2% on the day, while Ethereum (ETH) trades around $3,903, also down 2% in the same period.
Other major tokens are also in the red: BNB slipped 3.4% to $1,132, Solana (SOL) dropped 5.3% to $187, and XRP fell 3.4% to $2.36.
The day’s biggest losers included Zcash (ZEC), down nearly 14% to $217; ASTER, which dropped 10% to $1.24; and Story (IP), down 9% to $5.76. Meanwhile, the largest gainer on the day is ChainOpera AI (COAI), up 29% to $21, according to CoinGecko.
The total crypto market capitalization declined 2.3% to $3.78 trillion, with Bitcoin’s dominance at 57.2% and Ethereum’s share at 12.5%.
Liquidations and Market Flows
Roughly $647 million in crypto positions were liquidated in the past 24 hours, according to Coinglass. Longs accounted for roughly $474 million, while shorts made up $173 million.
Bitcoin led the liquidations with nearly $199 million, followed by Ethereum at around $133 million. Altcoins collectively accounted for about $65 million.
Spot Bitcoin ETFs recorded outflows of $104 million on Wednesday. Meanwhile, spot Ethereum ETFs attracted nearly $170 million, marking their second consecutive day of net inflows, according to SoSoValue.
Geopolitical Confusion
The market’s latest pullback comes as geopolitical tensions have intensified over the past week between China and the United States over trade tariffs.
However, unconfirmed reports surfaced earlier today suggesting that Chinese President Xi Jinping is willing to work with the U.S. toward a resolution on trade policies.
Adding to geopolitical tensions is the Trump administration authorizing the CIA this morning to conduct covert operations in Venezuela, the New York Times reported. The move follows weeks of U.S. military strikes on vessels off the Venezuelan coast reportedly linked to narcotics trafficking.
Federal Reserve Uncertainty
Markets are also uneasy as investors await the Federal Reserve’s next move at its meeting later this month.
Most expect the Fed to cut interest rates, with futures data from CME Group showing a 96% chance of a 375-400 bps rate cut. However, officials have not given any clear signals.
While some investors believe a rate cut is needed to keep the economy from weakening further, others worry it could make inflation worse. This uncertainty has caused markets to swing sharply in recent days, experts say.
