Bitcoin Price Drops Below $104K for the First Time in Three Months
Bitcoin has fallen more than 6 % in the past 24 hours and 14 % over the week, slipping below $104 000 for the first time since July. The broader crypto market followed the decline, with total capitalization shrinking from $4 trillion to $3.5 trillion, according to market trackers.
Trade Tensions Pressure the Market
Analysts link the correction to mounting concerns over the US-China trade war. New tariff measures and export restrictions have heightened global uncertainty, pushing investors toward traditional safe-haven assets. Rising inflation expectations could also influence the Federal Reserve’s monetary policy, reducing liquidity available for risk assets like crypto.Gold Rises as Crypto Volatility Returns
Amid fears of economic slowdown, gold prices climbed while digital-asset markets showed renewed volatility. Traders note that the correlation between Bitcoin and macroeconomic sentiment has strengthened — BTC often mirrors risk-asset behavior rather than acting as “digital gold.” The shift suggests that institutional strategies are still tied to broader market confidence rather than purely crypto fundamentals.Institutional Interest Still Growing
Despite the decline, long-term institutional engagement continues to expand. Major funds report steady inflows into Bitcoin and Ethereum ETFs, seeing the dip as a buying opportunity. On-chain metrics show that large-wallet holders have increased accumulation, a pattern historically preceding rebounds after macro-driven sell-offs.Market Outlook
Experts expect near-term volatility to persist until clarity emerges on trade policy and inflation data. If geopolitical tensions ease and inflation stabilizes, Bitcoin could regain momentum in Q4. Conversely, extended uncertainty may keep crypto markets under pressure, reinforcing the appeal of hedging in gold and short-term treasuries.Conclusion
Bitcoin’s fall below $104 000 underscores its sensitivity to global economic shifts. While fear dominates short-term sentiment, institutional accumulation and growing ETF infrastructure suggest that the long-term trajectory remains intact. The coming weeks will reveal whether the crypto market treats this correction as a pause — or the start of a deeper reset.Editorial Team — CoinBotLab