Bitcoin Dips Below $112K; Ethereum Falls Amid Broader Market Selloff

Bitcoin is currently trading around $111,759, while Ethereum has dropped to $4,026.11.

The crypto market is under pressure as macroeconomic signals and interest rate uncertainty weigh on sentiment. Major leveraged positions have been liquidated in both BTC and ETH, contributing to downward momentum.

Key Factors at Play:

• Rate Outlook & Fed Commentary: Markets are anxious about whether the U.S. Federal Reserve might pause or extend rate hikes, which could dampen risk asset inflows.
• Liquidations & Derivative Pressure: With sharp volatility, many leveraged long positions in ETH and altcoins were liquidated, accelerating the decline.
• Support Under Threat: Bitcoin’s support is being tested near $110,000, while Ethereum’s near $4,000. A break could spiral into deeper corrections.
• Altcoin Weakness: Many altcoins are following ETH’s lead, suffering larger percentage losses as market sentiment turns cautious.

What Traders Should Watch:

• Whether BTC holds above $110K and ETH above $4,000
• New data from inflation, employment, or Fed speeches
• Big token accumulations or transfers from whales
• Volume patterns — is this a capitulation or just a pullback?

Conclusion:

This pullback may be part of a healthy consolidation. But if support levels break, it could turn into a deeper correction. Traders should manage risk carefully, and watch for macro or regulatory catalysts that might reverse direction.