Why did the price of BTC fall?
Bitcoin (BTC) dropped 2.11% to $111,214 in the past 24 hours, following a broader crypto market decline of 2.85%. The main reasons behind this drop are:
- Economic uncertainty – Unclear Federal Reserve policies and a cautious market mood.
- Forced selling due to leverage – $1.8 billion in crypto positions were liquidated, causing a chain reaction of sell-offs.
- Technical breakdowns – Key price support levels were broken, triggering automated selling.
In-Depth Analysis
1. Economic Pressures & Fed Uncertainty (Negative Impact)
Summary:
Bitcoin’s price was pressured after Federal Reserve Chair Jerome Powell warned that inflation might stay high and interest rates could remain restrictive. This made investors less willing to take risks. The crypto market’s trading volume jumped nearly 26% to $199.7 billion, showing signs of panic selling (Bitget).
What this means:
Powell’s comments increased concerns that high interest rates will last longer, making Bitcoin less attractive as a risky investment. Bitcoin’s price tends to move with the stock market, shown by its 30-day correlation of +0.68 with the S&P 500, so it’s sensitive to these economic worries.
What to watch:
Upcoming U.S. economic reports like the Purchasing Managers’ Index (PMI) on September 26 and jobless claims on September 28 could give clues about future Fed decisions.
2. Leverage Liquidation Cascade (Negative Impact)
Summary:
More than $1.8 billion worth of crypto positions were forcibly closed in 24 hours, including $500 million from Ethereum falling below $4,000. Bitcoin saw $176 million in long position liquidations, its biggest daily loss since August 2025 (Coinglass).
What this means:
The market had a lot of borrowed money in play (open interest rose 15.5% weekly to $1.1 trillion), making it fragile. When Ethereum’s price dropped, it triggered forced selling across different cryptocurrencies. Bitcoin’s price fell below its 30-day simple moving average ($112,906), activating stop-loss orders and accelerating the sell-off.
3. Technical Weakness (Mixed Impact)
Summary:
Bitcoin’s price fell below the 38.2% Fibonacci retracement level ($113,847) and tested the 50-day exponential moving average ($112,591). The Relative Strength Index (RSI) over 7 days dropped to 42.23, indicating the asset is oversold.
What this means:
Short-term momentum is negative, but the longer-term support at the 200-day simple moving average ($103,869) is still holding. If Bitcoin can close above $113,800, it might signal a potential price recovery.
Conclusion
Bitcoin’s recent price drop is due to a combination of economic uncertainty, forced selling from highly leveraged traders, and technical breakdowns. Despite the sharp 24-hour decline, Bitcoin is still up 1.38% over the past 30 days, showing some resilience.
Key points to watch: Will Bitcoin recover above $113,800 to break the bearish trend, or will weakness in Ethereum push it down toward the $109,500 support level? Also, keep an eye on ETF flows to gauge institutional investor sentiment.
What could affect the price of BTC?
Bitcoin’s future depends on big investors, overall market risks, and the behavior of large holders (“whales”).
- ETF Momentum – The approval of Hashdex’s multi-asset ETF introduces altcoins alongside Bitcoin, signaling growing institutional interest but with mixed effects on BTC’s dominance.
- Macro Liquidation Risk – Uncertainty around Federal Reserve policies and $1.8 billion in recent forced sell-offs show the market’s vulnerability to sharp drops.
- Whale Accumulation – Large holders are rapidly buying over 1,000 BTC each, reducing available supply and potentially driving prices up.
Deep Dive
1. ETF Momentum & Altcoin Integration (Mixed Impact)
The U.S. Securities and Exchange Commission (SEC) recently approved the Hashdex Nasdaq Crypto ETF, which includes altcoins like XRP, SOL, and XLM alongside Bitcoin (BTC) and Ethereum (ETH). This ETF offers institutional investors more options to diversify their crypto holdings. However, this could also mean some investment money moves away from Bitcoin toward these altcoins. On September 24, spot Bitcoin ETFs saw $47 million in net outflows, according to Bitget.
In simple terms, while altcoins might reduce Bitcoin’s market share in the short term, the growing number of ETFs helps legitimize the entire crypto market. If altcoins remain volatile, Bitcoin could strengthen its position as a “safe haven” within crypto.
2. Macro Liquidation Triggers (Bearish Impact)
On September 24, more than $1.8 billion worth of crypto positions were forcibly sold off, a process called liquidation. This happened after Federal Reserve Chair Jerome Powell warned that stocks might be “overvalued” and gave unclear signals about future interest rate changes. Bitcoin’s trading volume over 24 hours was relatively low (2.72%), which can make price swings more extreme, according to Bitrue.
What this means is that because many traders use borrowed money (leverage), the market is vulnerable to rapid sell-offs. If Bitcoin’s price falls below $109,500 (a key technical level), it might test $100,000 again. However, if the Fed signals a more cautious approach after upcoming economic data, prices could stabilize.
3. Whale Supply Squeeze (Bullish Impact)
“Whales” are investors holding 1,000 or more Bitcoins. Since March, these whales have added over 218,000 BTC to their holdings, now controlling about 68% of all Bitcoin in circulation, according to Santiment. Recently, whale purchases through FalconX reached $196 million in BTC, per CMC.
This accumulation means fewer Bitcoins are available for trading on exchanges, which historically leads to price increases. However, if whales decide to take profits near $117,900 (another key technical level), upward momentum might pause until ETF-related investments pick up again.
Conclusion
Bitcoin’s short-term price swings will be influenced by overall market liquidity and ETF activity, while large holders accumulating Bitcoin and new ETF products support a positive long-term outlook. Keep an eye on the $109,500 support level and how inflows into Hashdex’s altcoin ETF affect Bitcoin’s role among institutional investors—will it weaken or strengthen Bitcoin’s position?
What are people saying about BTC?
The conversation around Bitcoin feels like a tug-of-war between those who believe in predictable market cycles and those hopeful about upcoming ETFs. Here’s what’s trending right now:
- Cycle models suggest Bitcoin could hit $200,000 within months
- Large investors (“whales”) are buying while everyday investors are nervous
- Technical signals show resistance around $118,000
Deep Dive
1. @nsquaredvalue: Parallel channels point to $200K target — bullish
"Red lines parallel. Green lines parallel. This chart points to Bitcoin reaching $200,000 in 170 days. I’d give it better than 50/50 odds."
– @nsquaredvalue (12.3K followers · 47K impressions · 2025-09-14 14:44 UTC)
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What this means: This is positive news for Bitcoin. Historical patterns, like those seen in 2020-2021, suggest that when Bitcoin breaks certain technical formations, it can quickly move higher. Traders use these parallel lines on charts to help decide when to buy.
2. @TheRealPlanC: Bear market warning with 50% drop risk — bearish
"If Bitcoin enters a bear market from here, max drawdown ≈50%—not 80% like past cycles. My base case: bull continues."
– @TheRealPlanC (89K followers · 210K impressions · 2025-09-25 15:31 UTC)
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What this means: This is a cautionary message. It suggests Bitcoin could drop by about half from current levels if a bear market starts, which is less severe than past crashes but still significant. The $55,000 level (half of $110,000) might become an important price point where investors decide whether to buy or sell.
3. @MI_Algos: $118K resistance battle heats up — mixed
"BTC faces rejection at 118,400–118,600. Clean breakdown below 117,200 could accelerate bearish pressure."
– @MI_Algos (327K followers · 1.2M impressions · 2025-08-17 06:54 UTC)
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What this means: This is a neutral signal. Bitcoin’s price has struggled to move past the $118,000 range, facing multiple rejections since August. This price area is important because it holds a lot of trading activity. If Bitcoin breaks above it, it could trigger a buying frenzy. If it falls below $117,200, selling pressure might increase.
Conclusion
The outlook for Bitcoin is mixed right now. Optimism from cycle models and institutional interest (like ETFs managing $150 billion) is balanced by technical resistance and some weakening buying from everyday investors. Keep an eye on the weekly close above $115,000 — if Bitcoin holds above this level, it could confirm a strong upward move. If not, the price might test support around $103,000.
What is the latest news about BTC?
Bitcoin is navigating a mix of strong institutional support and market ups and downs. Here are the latest key updates:
- SEC Approves ETF Including XRP (September 24, 2025) – The approval of the Hashdex ETF, which includes XRP, signals a more open regulatory stance toward alternative cryptocurrencies.
- $1.8 Billion Liquidation Hits Crypto Market (September 24, 2025) – Concerns about the economy and large investor sell-offs caused a wave of forced liquidations.
- Michael Saylor Sticks to $220K Bitcoin Price Prediction (September 24, 2025) – MicroStrategy’s ongoing Bitcoin purchases support a positive outlook from institutional investors.
In-Depth Look
1. SEC Approves ETF Including XRP (September 24, 2025)
What happened: The U.S. Securities and Exchange Commission (SEC) gave the green light to the Hashdex Nasdaq Crypto ETF, which now includes XRP along with Bitcoin and Ethereum. This is the first U.S. ETF to feature XRP, a cryptocurrency that has faced regulatory challenges in the past. The approval process was much faster than usual—taking 75 days instead of years—showing growing acceptance of cryptocurrencies by regulators.
Why it matters: This is good news for Bitcoin because the ETF’s broader range of cryptocurrencies could attract more institutional investors. However, since the ETF includes altcoins like XRP, it might slightly reduce Bitcoin’s market dominance. Clearer regulations might encourage more ETFs, but there’s still some risk if the SEC changes how it classifies these assets.
(Bitget)
2. $1.8 Billion Liquidation Hits Crypto Market (September 24, 2025)
What happened: More than $1.8 billion worth of leveraged crypto positions were forcibly closed as Bitcoin’s price briefly dropped to $111,000 and Ethereum fell below $4,150. Large investors, sometimes called “whales,” sold off big amounts—like 1,000 ETH sold for $4.19 million—which added to the market pressure. Other cryptocurrencies such as DOGE and SOL also fell between 5% and 10%. Analysts pointed to unclear Federal Reserve policies and weak economic data as the main causes.
Why it matters: This short-term sell-off is bearish, meaning prices dropped due to forced selling. However, it also helps reduce overly risky bets in the market. Bitcoin’s share of the total crypto market rose to 58.2%, suggesting investors may be seeking more stability in Bitcoin compared to altcoins right now.
(Bitget)
3. Michael Saylor Sticks to $220K Bitcoin Price Prediction (September 24, 2025)
What happened: Michael Saylor, the executive chairman of MicroStrategy, reaffirmed his prediction that Bitcoin could reach $220,000 by the end of 2025. He points to Bitcoin’s limited supply and growing use by companies as reasons for this optimism. MicroStrategy currently holds 639,000 BTC, worth about $70 billion, and U.S. spot ETFs now control about 6% of all Bitcoin in circulation.
Why it matters: This is a positive sign for Bitcoin’s long-term outlook, as more institutional investors and companies are buying and holding Bitcoin, which reduces the available supply. However, some experts warn that Bitcoin’s price could still be volatile due to economic shocks or changes in regulations.
(Bitrue)
Conclusion
Bitcoin’s path forward is shaped by growing institutional interest—through ETFs and corporate holdings—while also facing challenges from economic uncertainty and market volatility. Michael Saylor’s bullish view highlights Bitcoin’s increasing role in traditional finance, but traders are watching closely for support levels around $105,000 to $100,000 if Federal Reserve policies remain uncertain. The big question remains: will the rise of altcoin ETFs reduce Bitcoin’s market dominance, or will Bitcoin keep its reputation as “digital gold”?
What is expected in the development of BTC?
Bitcoin’s development is focused on making the network bigger and faster, encouraging more businesses and institutions to use it, and expanding the overall Bitcoin ecosystem.
- Proto Mining Chip (2025) – Block (formerly Square) will release an open-source Bitcoin mining chip to help more people mine Bitcoin and reduce control by a few big companies.
- Strategic Bitcoin Reserve (2026) – The U.S. government is working on laws to officially hold Bitcoin as part of a national reserve.
- sBTC Mainnet (Q4 2025) – Stacks will launch a new system allowing Bitcoin holders to use their BTC in decentralized finance (DeFi) without needing a middleman.
Deep Dive
1. Proto Mining Chip (2025)
Overview: Block plans to launch Proto, an open-source Bitcoin mining chip, in 2025. This chip is designed to make Bitcoin mining more accessible by allowing smaller players to build mining hardware, instead of relying on a few big companies like Bitmain. This could make the Bitcoin network more secure by spreading out mining power.
What this means: This is good news for Bitcoin because it helps prevent mining power from being controlled by a small group. However, success depends on how affordable the chip is and whether regulations support domestic production.
2. Strategic Bitcoin Reserve (2026)
Overview: The U.S. government is working on legislation to create a Strategic Bitcoin Reserve, following a 2025 executive order by former President Trump. The plan includes ideas like having federally approved miners or converting agency fees into Bitcoin, all without using taxpayer money (Bitcoinist).
What this means: This could increase confidence in Bitcoin from large institutions and the public. However, political delays and unclear details on how Bitcoin will be acquired pose some risks.
3. sBTC Mainnet (Q4 2025)
Overview: Stacks is set to launch “Satoshi Upgrades” in late 2025, introducing sBTC—a version of Bitcoin that can be used in decentralized finance (DeFi) without needing a trusted middleman. Users can create sBTC tokens backed 1:1 by actual Bitcoin, allowing them to earn interest or use their BTC in new ways (Stacks).
What this means: This development could make Bitcoin more useful and attract over $10 billion worth of BTC into DeFi. However, there are risks like potential software bugs and the need for miners and stakers to work together to keep the system secure.
Conclusion
Bitcoin’s future plans focus on spreading out mining power (Proto), gaining official government support (Strategic Reserve), and expanding financial uses through DeFi (sBTC). While new technologies like sBTC could boost Bitcoin’s price in the short term, clear regulations will be key for long-term growth. The big question remains: will Bitcoin’s Layer 2 solutions grow faster than traditional finance’s adoption of BTC?
What updates are there in the BTC code base?
Bitcoin’s software has undergone major updates, including a significant increase in the amount of data that can be stored on the blockchain and improvements to network security and mining.
- Core 30 OP_RETURN Expansion (October 2025) – Raises the limit for storing extra data on the blockchain to 4MB, allowing more advanced uses like timestamping documents and creating decentralized IDs.
- Core 29 Network Upgrades (May 24, 2025) – Boosts security, makes mining more flexible, and updates developer tools for easier software building.
Deep Dive
1. Core 30 OP_RETURN Expansion (October 2025)
Overview: The latest Bitcoin Core 30 update removes the previous 80-byte limit on OP_RETURN outputs. OP_RETURN is a feature that lets users attach extra data to transactions without moving money. Now, users can include up to 4MB of data per transaction, opening the door to new applications such as proving when a document existed or managing decentralized digital identities.
This change was approved through a formal software update process (pull request #32406) and matches what miners were already doing unofficially. It replaces older, less efficient methods that cluttered the system. Supporters say this encourages innovation without needing permission, while critics worry it could lead to spam and distract Bitcoin from its main role as digital money. Operators running Bitcoin nodes can still choose to limit data size manually, but these options are being phased out.
What this means: This update is a balanced move. It gives developers more freedom to build new tools but also raises concerns about network load and differing views on Bitcoin’s purpose. (Source)
2. Core 29 Network Upgrades (May 24, 2025)
Overview: Bitcoin Core 29.0 focused on making the network safer and more efficient. It removed UPnP, a feature that posed security risks, improved how the software handles internet connections (NAT-PMP/IPv6), and fixed a bug that limited how much data miners could include in blocks.
Developers also switched from an older software building system (Autotools) to a newer one (CMake), making it easier to compile and maintain the software. New commands were added to help wallets scan for activity more effectively.
What this means: These improvements make Bitcoin’s network stronger and mining more efficient, while also modernizing the tools developers use. Node operators will need to update their settings, but overall, these changes reduce vulnerabilities and support smoother development of second-layer solutions (which help scale Bitcoin). (Source)
Conclusion
Bitcoin’s software continues to evolve, balancing core security with new possibilities. While Core 29 focused on tightening network reliability, Core 30’s expansion of OP_RETURN shows the ongoing debate between pushing innovation and staying true to Bitcoin’s original goal as digital cash. The real test will be whether enough node operators adopt Core 30 to prove its value or if it deepens divisions within the community.