The crypto market is reeling after a sharp reversal that erased nearly all of its recent gains, with Bitcoin falling below $109,000, and Ethereum slipping under $4,000.

The sell-off has left traders grappling with high volatility, forced liquidations, and a renewed sense of caution across digital assets.

FOMC hangover

Timothy Misir, head of research at BRN, described the current downturn as a “post-FOMC hangover,” while pointing out that Bitcoin price dropped to as low as $108,652 during the week.

According to Misir:

“The move flushed highly leveraged longs and prompted a swift repricing: volatility spiked, puts were bought aggressively, and front-end skew moved materially higher.”

Notably, this price slump dipped below BTC’s short-term holder realized price of $109,700 for the first time in five months, signaling stress among recent buyers.

Ethereum mirrored the weakness,

Go to Source to See Full Article
Author: Oluwapelumi Adejumo