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Bitcoin’s price has nosedived to around $113,000 (PKR 3.1 crore), a stark reversal from last week’s record-breaking high above $124,000 (PKR 3.4 crore), sparking widespread volatility across the crypto markets. Ethereum also slipped, hovering near $4,100 (PKR 11.4 lac), as investor confidence dipped sharply in response to macroeconomic pressures and profit-taking.
What’s Fueling the Bitcoin Price Crash?
Macro Pressures and Tariffs
The sharp downturn comes amid rising U.S. tariffs and persistent inflation concerns, which have eroded global risk appetite. The worsening economic climate has directly weighed on crypto sentiment, forcing investors to retreat from speculative assets.
Profit-Taking and ETF Outflows
After weeks of rallying, many traders rushed to lock in profits. Significant ETF outflows and continued regulatory uncertainty added downward pressure, preventing Bitcoin from finding a stable floor.
Mass Liquidations Intensify the Sell-Off
Over $113 million worth of leveraged long positions were liquidated in less than 24 hours. This cascade of forced selling further destabilized the market, triggering a ripple effect across smaller altcoins.
Retail Panic, Whale Accumulation
Retail investors are exhibiting their most bearish sentiment since June. However, contrarian signals are emerging, as large holders, or whales, appear to be quietly accumulating. Reports suggest a Bitfinex whale has been buying up nearly 300 BTC per day using a TWAP strategy, signaling potential confidence in Bitcoin’s long-term trajectory.
Ripple Effect Across Markets
The crypto downturn also spilled into equities tied to digital assets. MicroStrategy tumbled 7.8 percent, while Coinbase and Galaxy Digital saw losses between 5 and 10 percent, reflecting Wall Street’s synchronized pullback from crypto-linked investments.
Why This Correction Matters
This sharp correction highlights Bitcoin’s vulnerability to global macroeconomic shifts and policy uncertainty, especially with the upcoming Federal Reserve’s Jackson Hole symposium likely to shape investor expectations. While short-term turbulence has shaken retail sentiment, institutional demand and strategic whale buying could provide a stabilizing foundation.
For disciplined investors, such fear-driven corrections may represent opportunities rather than setbacks, marking yet another chapter in Bitcoin’s volatile but evolving journey.
