Bitcoin Trades Below $110,000 as Market Faces Liquidity Challenges

Market Overview

Bitcoin trades below $110,000, down 7% from a peak of over $117,000 after Powell's speech. Ethereum hovers above $4,300 after touching $4,900 but shows signs of exhaustion.

Key Points

Market liquidity is thinning with ETF outflows and fragile on-chain activity.
Billion-dollar institutional allocations contrast with retail liquidations.
Glassnode reports fading spot momentum and significant ETF outflows of $1 billion.
A holder sold 24,000 BTC, leading to $500 million in liquidations, exposing market brittleness.
Ethereum experiences $2.55 billion in stake inflows while retail longs face liquidation.
Transaction fees are at decade lows, raising concerns for miners amidst reduced rewards.
September historically sees Bitcoin price consolidation or declines.

Market Movement

BTC: Prices fell to $109,700, down 2.7% on the day.

ETH: Dropped nearly 8% below $4,400, contributing to $700 million in liquidations.

Gold: Holds above $3,350 amid geopolitical tensions.

Nikkei 225: Down 0.54% as investors react to U.S.-China trade discussions.

S&P 500: Decreased by 0.4% as focus shifts to Nvidia’s earnings.

Elsewhere in Crypto

Grayscale files to convert Avalanche Trust to ETF.
Japan's Finance Minister states crypto assets can diversify portfolios.
Discussion on venture trends and regulatory developments in cryptocurrency.