Bitcoin May Hover Above $109K After $970M Liquidations as Core Inflation Hits 2.9% and Tariff Risks Rise

• Bitcoin near-term range: $108,000 support, $111,000 resistance

• About $970 million in liquidations in 24 hours; $852 million were long positions, largest single liquidation ~$19.2M (ETH-USDT).

• Core inflation rose 2.9% year-over-year in August, and announced tariffs add an uncertain one-off inflationary risk.

Bitcoin price above $109,000 after $970M liquidations; core inflation 2.9% in August. Read latest market signals and trader guidance from COINOTAG.

What is driving the Bitcoin price after $970 million in liquidations?

Bitcoin price is being driven by a mix of forced futures liquidations, macro inflation readings and newly announced tariffs. Forced closures of leveraged long positions created short-term downward pressure, while August core inflation at 2.9% and tariff announcements added policy and growth uncertainty.

How did core inflation and tariffs affect BTC volatility?

Core consumer prices rose 2.9% year-over-year in August, while headline inflation was 2.7% year-over-year, according to the Bureau of Labor Statistics. Those readings kept reaction muted but signaled persistent price pressures. President Trump announced new tariffs effective October 1—announcements that could produce transient price-level shocks and weigh on growth expectations.

Bitcoin dipped to about $109,000 in the past 24 hours and rebounded to roughly $109,300 early Friday. Price data from CoinGecko shows BTC fell 1.5% over 24 hours and 5.9% over the last week. Market-wide declines forced margin calls and large liquidations across futures venues.

Crypto futures data shows roughly $970 million in contracts were liquidated in the past 24 hours. About $852 million of those liquidations were long positions. CoinGlass reported the single largest liquidated position was a $19.2 million ETH‑USDT contract on HTX.

On prediction markets, user sentiment shifted toward more bearish outcomes. Myriad users—Myriad is a prediction market owned by DASTAN—showed 69% now expect BTC to fall to $105,000 before testing $125,000, reversing an earlier even split between bulls and bears.

Why are traders watching Fed policy and rate-cut probabilities?

Traders watch consumer spending and inflation because they feed directly into Federal Open Market Committee expectations. The CME FedWatch Tool shows about 87.7% odds that the FOMC will approve a 25‑basis‑point cut at the next meeting, down from 91.9% the prior week.

Public commentary from Federal Reserve Chair Jerome Powell, including remarks at the Greater Providence Chamber of Commerce, has been monitored closely. Powell described tariff-related price effects as likely to be a short-lived, one-time shift in the price level.

Dean Chen, an analyst at crypto derivatives exchange Bitunix, noted that inflation printing in line with forecasts helped mute immediate market reactions. He warned, however, that the recently announced tariffs “remain an uncertain factor that could deliver one-off inflationary pressure while weighing on growth.”

Frequently Asked Questions

How much was liquidated in the recent Bitcoin sell-off?

About $970 million in futures were liquidated in 24 hours. Roughly $852 million of those were long positions. The largest single reported liquidation was a $19.2 million ETH‑USDT contract on HTX, per CoinGlass.

What should traders monitor after large liquidations?

Monitor funding rates, open interest, and capital flows for validation of breakouts or fake-outs. Keep leverage low, scale into positions, and watch macro calendar items such as Fed statements and tariff implementation dates.

Key Takeaways

• Market impact: $970M in liquidations forced short-term price volatility and trimmed leveraged long exposure.
• Macro backdrop: Core inflation at 2.9% and tariff announcements add a mix of price-level and growth uncertainties.
• Trader guidance: Control leverage, scale positions, and use $108,000 support and $111,000 resistance as near-term reference points.

Conclusion

Bitcoin’s recent moves reflect a collision of forced crypto liquidations and evolving macro signals—August core inflation at 2.9% and newly announced tariffs—that together have heightened short-term market caution. For now, traders and analysts should watch liquidity flows, Fed messaging, and tariff developments to assess whether BTC resumes a broader trend or remains range-bound. COINOTAG will continue monitoring these indicators and updating coverage as events evolve.

Sources referenced as plain text: Bureau of Labor Statistics (BLS), CoinGecko, CoinGlass, Myriad (DASTAN), Bitunix, CME FedWatch Tool, remarks by Federal Reserve Chair Jerome Powell. Published by COINOTAG. Updated: 2025-09-26.