Bitcoin plunged to its lowest level in seven weeks on Thursday, trading near $110,000 amid growing investor caution and macroeconomic uncertainty. The leading cryptocurrency fell as much as 6% in early trading, marking a sharp reversal from its recent all-time highs above $120,000 reached in late May.
The sell-off coincided with stronger-than-expected U.S. economic data, which reignited concerns about delayed interest rate cuts by the Federal Reserve. Rising Treasury yields and a strengthening U.S. dollar have further pressured risk assets, including digital currencies.
Market analysts point to increased leverage liquidations and profit-taking after the recent rally as contributing factors to the sudden downturn. According to data from CoinGecko, over $800 million in long positions were liquidated across major exchanges within 24 hours.
"Bitcoin's pullback reflects a broader risk-off sentiment in financial markets," said Sarah Chen, head of research at Apex Digital Assets. "While the long-term fundamentals remain strong, short-term volatility is likely to persist as investors assess the Fed's next moves."
Despite the drop, Bitcoin is still up over 45% year-to-date, supported by growing institutional adoption and the ongoing impact of the April 2024 halving event. Investors now await key economic indicators and commentary from Federal Reserve officials for clues on the future direction of both traditional and digital markets.
As of 10:00 AM UTC, Bitcoin was trading at $110,350, down nearly 5% in the past 24 hours.
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