Bitcoin Resumes Slide: 6-Week Low Under $110K. What’s Next for Crypto?

Bitcoin’s hot summer rally has hit turbulence. After soaring to an all-time high of $124,500 earlier this month, the world’s largest cryptocurrency has slid to $108,000 — its lowest level in six weeks. While bargain hunters are already stepping in, traders are asking the big question: is this the dip, or just the dip before the dip?

The Powell Pop and Weekend Flop

Last Friday, Fed Chair Jerome Powell fueled optimism at Jackson Hole by signaling that a September rate cut was likely on the table. Bitcoin jumped in response as risk-on enthusiasm returned to the market.

But the optimism faded quickly. By Tuesday morning, BTC had given back its Powell-inspired gains, plunging back under $110,000 as macro uncertainty returned to the forefront. The crypto market is now down roughly 12% from peak levels, highlighting how fragile sentiment remains.

Ethereum Joins the Retreat

It wasn’t just Bitcoin. Ethereum followed suit, slipping nearly 12% from its record high of $4,955, to trade near $4,400. Just a week ago, crypto’s “everything rally” looked unstoppable. Now, momentum looks far more cautious, with technical traders eyeing $105,000 as a possible support level for Bitcoin.

Eyes on Friday’s PCE Inflation Report

The next key market driver is Friday’s release of the PCE Price Index, the Fed’s preferred inflation gauge. Expectations are for core PCE at 2.9%, slightly above June’s 2.8%.

• If PCE comes in cooler than expected: rate-cut odds could surge again, fueling a risk-asset rally across equities and crypto.

• If PCE comes in hotter than expected: markets may need to reprice Fed policy, and Bitcoin could see further downside.

What This Means for Investors

Despite the turbulence, Bitcoin still boasts a $2.2 trillion market cap with deep institutional liquidity. Large players may see this dip as an entry point, especially if macro conditions improve.

At WSP Capital, our automated futures trading platform is designed to navigate precisely this kind of volatility. By leveraging AI-driven strategies, we adapt in real time to market swings, helping investors manage risk while seeking consistent returns.

Key takeaway: Whether this is just a healthy pullback or the start of a deeper correction will depend on Friday’s inflation print and how aggressively the Fed signals its next move.