Bitcoin dropped by nearly 2.15% in the past day to trade at $109,506 on Friday. Analysts said this reflects short-term caution in the crypto market, though if momentum builds, BTC could retest all-time highs by year-end.

“Bitcoin is currently consolidating around $110,000 after a recent dip, reflecting short-term caution in the market. Despite volatility, its long-term outlook remains bullish, supported by reduced supply from the 2024 halving and strong institutional interest,” said Sathvik Vishwanath, Co-Founder & CEO of Unocoin.

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“Key resistance lies near $120,000, with support around $108,000. Regulatory clarity and macroeconomic shifts could drive the next major move. On-chain data shows whales holding firm, limiting sell pressure. While short-term sentiment is mixed, the broader trend favors gradual growth. If momentum builds, Bitcoin could retest all-time highs by year-end. Traders are watching ETF flows, rate cuts, and geopolitical risks as key catalysts in this cycle,” Vishwanath added.

At 11:13 AM IST, Bitcoin was trading at $109,402 on Friday. BTC declined 2.17% over the past 24 hours and was down nearly 6.44% over the past week. Ethereum, meanwhile, was at $3,947, falling 2.05% in the past 24 hours and 13.03% over the last seven days.

According to CoinMarketCap data, the crypto sector’s overall market capitalisation stood at around $3.76 trillion on Friday.

According to CoinSwitch Markets Desk, the broader crypto market consolidated in red on Thursday as lower-than-expected US jobless claims tempered hopes of near-term Fed rate cuts.

“The broader crypto market consolidated in red yesterday as lower-than-expected US jobless claims tempered hopes of near-term Fed rate cuts. While risk-off sentiment has driven a wave of liquidations, an important countertrend is emerging: spot buyers are stepping in with larger allocation sizes. This divergence suggests that despite short-term volatility, conviction among long-term participants remains intact,” CoinSwitch Markets Desk said.

“Corrections of this nature are not unusual when macro surprises unsettle expectations. Market participants should watch upcoming macro releases, including today’s PCE inflation data, for further signals,” it added.

Market perspective

Avinash Shekhar, Co-Founder & CEO of Pi42, said:

“The crypto market is under significant pressure as hot macro data has dashed rate cut hopes and traders reassess risk. Bitcoin has slipped below $110,000 ahead of a $22 billion monthly options expiry, increasing volatility and forcing roughly $1 billion in long liquidations. Ethereum has plunged under $4,000 with over $36 million liquidated, amplifying downside momentum.”

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Solana has slid below $200 as ETF speculation cools, while XRP has fallen sharply, dragging crypto-linked stocks lower. These moves reflect rapid unwinding and concentrated selling across sectors. Traders are now watching whether key supports hold through the options expiry. If they do not, short-term pain could deepen; otherwise, stabilization may potentially set the stage for a controlled recovery.

Currently, XRP is trading at $2.76, registering a decline of 3.37% in the last 24 hours and 9.29% over the past week. Solana is trading at $195, witnessing a decline of 4.70% in the last 24 hours and 20.24% over the past week.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)