Bitcoin Price Falls Below $113K as Inflation Worries and Tech Sell-Off Weigh on Markets

Bitcoin slipped under $113,000 in mid-week trading, pressured by profit-taking, U.S. inflation concerns, and a broader sell-off in tech stocks. The world’s largest cryptocurrency broke below its 50-day Exponential Moving Average (EMA) of $114,903, signaling weakness after four straight months of gains. The dip follows resistance at $125,000 last week, marking Bitcoin’s first monthly loss since March.

Macroeconomic jitters contributed to the decline, as a strong U.S. Producer Price Index (PPI) inflation report cooled expectations of aggressive Federal Reserve rate cuts this year. The shift in sentiment reduced risk appetite across digital assets, mirroring losses in U.S. equities. Bitcoin, often touted as “digital gold,” continues to behave like a risk asset, tracking the performance of tech stocks rather than acting as a safe haven.

Technical indicators also point to further downside. The Relative Strength Index (RSI) dropped to 41, below the neutral 50 level, while the Moving Average Convergence Divergence (MACD) signaled a bearish crossover. Heavy liquidations added to selling pressure, with over $500 million worth of Bitcoin wiped out in a single day. The pullback dragged BTC to an overnight low of $112,580, nearly 9.5% below its recent peak of $124,517. Ether also slipped, trading near the $4,000 support level.

Despite the turbulence, Bitcoin’s long-term trend remains constructive. From February’s lows of $81,975, BTC has climbed nearly 39% to current levels, supported by institutional inflows and rising adoption. Analysts say the correction reflects healthy profit-taking and institutional distribution rather than panic selling. Bitcoin’s dominance currently stands at 58%, though altcoins have gained ground as investors diversify their holdings.

At $2.26 trillion in market capitalization, Bitcoin continues to lead the crypto market even amid selling pressure. The coming weeks will be pivotal, with the Federal Reserve’s September policy meeting expected to influence investor sentiment. If inflationary pressures persist and equities remain volatile, Bitcoin could face further tests of its “digital gold” narrative while traders brace for heightened market uncertainty.

Source: Naira metrics