What happened?
Bitcoin plunged below $111,000 after getting rejected near $124,500, where a bearish engulfing candle triggered heavy profit-taking. The selloff pulled down major altcoins—Ethereum, BNB, Solana and XRP all fell double digits—while total crypto market cap slid to about $3.7 trillion and 24‑hour volumes neared $497 billion. The Crypto Fear & Greed Index dropped to 35 (Fear), marking the steepest weekly sentiment decline since March.
Who does this affect?
Short‑term traders and recent buyers are most exposed as stops and profit-taking amplified the decline. Institutional investors and ETFs feel the impact too, since Bitcoin’s correlation with U.S. equities makes crypto exposure more sensitive to macro shocks. Altcoin holders are also hit hard, with the Altcoin Season Index falling and the CoinMarketCap 20 Index down over 10%, signaling broad sector selling.
Why does this matter?
If BTC can hold the $108k–$110k support and reclaim $117k, it could trigger a recovery toward $124k–$126k and present a buy‑the‑dip opportunity for swing traders. But failure to defend that zone risks deeper drops to $103k and $98.2k, raising volatility and the chance of forced liquidations across crypto and correlated risk assets. The outcome will affect liquidity, ETF demand and institutional flows, so market participants will likely tighten risk controls and watch macro cues closely.