Bitcoin experienced a notable decline today, falling to its lowest level in over two weeks as market sentiment turned cautious amid growing macroeconomic concerns and profit-taking by investors. The leading cryptocurrency dropped below the $113,000 mark, reaching a low of $112,700 during early trading hours — a significant retreat from its recent peak near $118,000.
The downward movement comes after a period of strong gains fueled by optimism surrounding the approval of U.S. spot Bitcoin ETFs and expectations of continued institutional adoption. However, recent data showing hotter-than-expected inflation in the United States has reignited fears of delayed interest rate cuts by the Federal Reserve, prompting a broader sell-off in risk assets, including cryptocurrencies.
Market analysts suggest that the pullback is a natural correction following Bitcoin’s rapid ascent in March. "After such a strong rally, it's not surprising to see some consolidation," said Sarah Thompson, senior market analyst at CryptoInsight. "We’re seeing traders lock in profits, and short-term volatility is likely to persist as the market digests macroeconomic signals."
Trading volume increased significantly during the decline, indicating heightened investor activity. On major exchanges such as Binance, Coinbase, and Kraken, Bitcoin was trading around $112,900 at the time of reporting, down nearly 4% over the past 24 hours.
Meanwhile, the broader crypto market followed Bitcoin’s lead, with Ethereum, Solana, and other major digital assets also posting losses. The total cryptocurrency market capitalization dipped below $2.3 trillion, reflecting a shift toward risk aversion.
Despite the short-term downturn, long-term investors remain confident, citing fundamentals such as the upcoming Bitcoin halving event — expected in April 2024 — which historically precedes bull market cycles. Additionally, growing adoption by financial institutions and increasing interest from retail investors continue to support the asset’s long-term outlook.
As of now, key support levels are being monitored around $110,000, while resistance remains near $116,000. Market participants will closely watch upcoming economic data, including the U.S. employment report and Fed commentary, for clues on the future direction of both traditional markets and digital assets.
In conclusion, while Bitcoin has pulled back to a two-week low below $113,000, many experts view the correction as healthy within the context of a longer-term bullish trend.
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