The crypto market turned defensive ahead of the U.S. PCE figure, with sentiment shifting to risk-off as traders positioned for the inflation print. Liquidations accelerated and prices fell across the board, hitting both retail and institutional holders and squeezing Bitcoin as well as Ethereum.
The slide follows several macro triggers. The PCE index tracks inflation and sets the tone for Federal Reserve decisions. A print above forecasts would keep the Fed hawkish, lift the dollar and push money away from risk assets. Talk of a U.S. government shutdown as well as firm economic numbers have also pushed back bets on near term rate cuts, and traders dumped risk.
Impact on Crypto Market Today
Leverage amplified the move lower. Heavy use of leverage, especially in altcoins, forced more liquidations and deepened the fall. Spot Ether ETFs saw net outflows and futures open interest dropped, and both factors weighed on price.
Price action turned bearish across majors. Bitcoin swung between USD 108 780 and USD 113 700 in a single session, and charts show a bear tilt with support at USD 110 000 and USD 100 000. Ethereum slipped below USD 4 000, while coins with thin institutional backing, such as Dogecoin, recorded some of the largest losses.
Ether-linked products lost money and their ETFs declined, suggesting institutional demand may cool for a while. Retail leverage stays high, making further forced sales and volatile swings likely.
A firmer dollar plus rising Treasury yields drag on Bitcoin because the coin has moved with those variables before. Some funds cut exposure yet others added on the dip, opening short term slots for firms that meet custody but also compliance rules.
Technical support for BTC: ~USD 108 500 – 110 000, ETH broke below USD 4 000 on ETF outflows and futures pressure, and DOGE as well as similar speculative tokens react faster to mood shifts. Analysts such as Michaël van de Poppe note that “a significant part of the correction has already occurred”.
The next U.S. PCE print is the near-term catalyst. A high figure would extend the risk-off phase, while a low print would ease the pressure. Product and compliance desks must track flows and manage margin in case another liquidation wave arrives.
