Bitcoin May Be Testing Support After Brief Drop Below $113,000 Amid Inflation and Fed Uncertainty

• Bitcoin fell below $113,000 for the first time since August 2, reversing a recent all-time high run.

• Macro factors—rising Treasury yields, stronger CPI, and geopolitical risks—prompted broad risk-off flows.

• Market data shows $559 million of positions closed, including $487 million of longs, increasing liquidation pressure.

Bitcoin price drop: Bitcoin fell below $113,000 amid rising yields and hotter CPI—read concise market analysis and key takeaways now.

What caused the Bitcoin price drop below $113,000?

The Bitcoin price drop was driven by a mix of macroeconomic jitters and position unwinding. Rising Treasury yields, a hotter-than-expected July Consumer Price Index, and profit-taking after Bitcoin’s $124,128 high combined with leveraged liquidations to push prices under $113,000.

How did macro data and market positioning affect crypto today?

Short-term selling followed stronger U.S. economic readings and a rise in yields. The Consumer Price Index for July rose to 2.7% year-over-year, with core CPI at 3.1%, keeping inflation above the Federal Reserve’s 2% target.

Industry voices framed the move as a mix of factors. Joe DiPasquale, CEO of BitBull Capital, called the pullback “a mix of macro jitters and positioning after the recent run-up.” Juan Leon, Senior Investment Strategist at Bitwise Investments, attributed cascading liquidations and profit-taking to the drop.

Why did Bitcoin decline while equities fell too?

Bitcoin moved in tandem with equities as investors reduced exposure to risk-on assets ahead of key economic reports and the Fed’s schedule. Major indices also dipped—S&P 500 down 0.6% and Nasdaq down 1.4%—amplifying cross-asset selling pressure on crypto.

What were the immediate market moves and figures?

Bitcoin traded around $113,200, down roughly 2.5% in 24 hours after hitting $124,128 last Thursday. Ethereum traded near $4,100, down about 4.6% from Monday. XRP and Solana fell approximately 6.7% and 3.5%, respectively.

Data provider CoinGlass (plain text) reported $559 million of positions closed, including $487 million of long liquidations, increasing downward momentum.

Frequently Asked Questions

How long might Bitcoin stay below $113,000?

Short-term moves depend on macro updates and liquidation flows. If yields stabilize and Fed signals easing, Bitcoin may recover; persistent stronger data or further liquidations could extend the pullback.

What should investors watch this week?

Monitor unemployment claims, manufacturing reports, Fed minutes and Powell’s remarks at Jackson Hole. Watch Treasury yields and liquidation metrics (CoinGlass data) for clues on risk sentiment.

Is this pullback a sign to sell?

Decisions should be based on individual risk tolerance. Many experts describe this as profit-taking and position rebalancing rather than fundamental collapse; risk management is recommended.

Key Takeaways

• Macro drivers: Rising Treasury yields and hotter CPI pushed risk-off flows.
• Market mechanics: $559M closed positions (about $487M longs) intensified downward pressure.
• Watchlist: Fed minutes, Jackson Hole remarks, unemployment claims and manufacturing data for next directional cues.

Conclusion

Bitcoin’s pullback below $113,000 reflects a confluence of macro pressure and profit-taking after a rapid rally to $124,128. Bitcoin price drop is tied to yield movements, inflation readings and liquidation dynamics. Market participants should monitor upcoming economic data and Fed communication to assess potential recovery or further downside.

Published: 2025-08-06 · Updated: 2025-08-06 · Author: COINOTAG