Bitcoin fell below $110,000 on Friday as traders processed the disappointing results of President Trump’s meeting with Chinese leader Xi Jinping and Federal Reserve signals regarding future rate cuts.
Major crypto assets were also pulled down by the decline, with Ethereum, Solana, and other tokens suffering large losses.
The top digital currency set a new high of $126,080 early this month, which analysts have dubbed “Uptober” due to historically high cryptocurrency and stock market gains.
But as of right now, Bitcoin is trading almost 15% below that peak.
Markets believe that the price action of Bitcoin has confirmed a “bearish MACD crossover,” which, based on past trends, may indicate the end of the BTC bull run.
Bitcoin’s highest point
It should be noted that the highest points for Bitcoin occurred during the 2017 and 2021 bull cycles, the last two times MACD issued this bearish signal. According to these and “several other warnings,” the top is in. One of them is a decrease in network activity, which indicates a decrease in on-chain demand.
The number of daily active addresses on the Bitcoin network dropped by 30% in October, from 632,915 to 447,225, according to Nansen data.
Most of the liquidations in the crypto futures market soared past $1.1 billion over the past day, with the vast majority being long positions betting on prices to rise. Nearly $500 million of liquidations came from Bitcoin alone, with Ethereum adding more than $250 million to the total.
U.S. interest rate factor
The sell-off follows Federal Reserve Chair Jerome Powell’s comments hinting that the U.S. central bank may not cut interest rates again this year. Bitcoin, crypto assets, and stocks typically perform well in low-interest-rate environments, and the Fed has cut rates at the last two meetings.
President Trump’s trade war with China and other countries has rocked markets since he took office in January. His unexpected tariff announcements have often led to Bitcoin and risk-on assets like tech stocks dropping sharply despite being a crypto-friendly leader. Even after softening tariffs on China by 10% following the South Korea meeting, markets remained unimpressed despite Trump calling it “truly great” and “amazing.”
However, the pioneer crypto asset is showing signs of recovery, hovering near $109,000 after finding support at $106,400 on Thursday. The recent pullback was triggered by profit booking, following FOMC’s cautious stance on the December rate cut and $1.1 billion worth of long liquidations across major exchanges.
Meanwhile, Michael Saylor, the chairman of Strategy, stated that his company is not interested in purchasing other Bitcoin treasury companies because doing so is uncertain, though he did not completely rule it out.
“In general, we don’t have any plans to pursue M&A [merger and acquisition] activity, even if it would appear to be potentially accretive,” Saylor stated to investors during Strategy’s third-quarter earnings call on Thursday. “There’s just a lot of uncertainty, and these things usually take a year or six to nine months,” he continued. “An idea that seems promising at first might not be a good idea six months later”
According to analysts, as the number of players in the market rises and businesses strive to set themselves apart from their competitors, Bitcoin treasury companies may need to start purchasing one another.
