The cryptocurrency market experienced a significant downturn, with over $343 million in liquidations occurring in the past 24 hours.

This sell-off coincides with Bitcoin's price dropping to the $113,000 mark, a level not seen in nearly a month.

The broader market followed suit, reflecting investor concerns over economic indicators and geopolitical events.

Bitcoin's Price Correction

Bitcoin (BTC) has seen a notable price correction, falling by 0.8% in the last 24 hours.

Over the past week, BTC has declined by 4%, and over the last 14 days, it's down 4.4%.

Despite these short-term losses, Bitcoin has managed to retain gains in the monthly and yearly charts, showing increases of 3.6% and 104%, respectively.

Potential Market Triggers

The recent dip in the cryptocurrency market is largely attributed to the Federal Reserve's decision to maintain current interest rates.

Compounding this sentiment, worse-than-expected jobs data, with nonfarm payrolls increasing by only 73,000, has further unsettled market participants. President Trump's reaction to the lackluster figures, including the dismissal of BLS Commissioner Erika McEntarfer, highlights the economic anxieties.

Additionally, President Trump's recent imposition of new tariffs has introduced global trade uncertainties.

As highly volatile assets, cryptocurrencies like Bitcoin have been particularly sensitive to these trade wars and the resulting investor confusion.

Future Outlook and Rate Cuts

Many financial entities are anticipating a potential interest rate cut by the Federal Reserve in September.

The CME FedWatch tool indicates an 85.4% probability of a 25 basis point rate reduction next month.

Major financial institutions such as Goldman Sachs, Wells Fargo, and Citigroup also share this outlook.

Should the Federal Reserve proceed with a rate cut, it could make borrowing more accessible, potentially leading to a rebound in Bitcoin's price and the broader cryptocurrency market.

Sources:

• Bitcoin Price Drops Below $113,000 Amid Whale Sell-offs
• Wall Street falls as Trump tariffs and weak jobs report hit global markets – as it happened
• Trump Tariffs Hiring Slump Makes Fed Cut Likely; S&P 500 Falls
• Bitcoin Price Plummets Toward $113K as Total Liquidations Approach $1 Billion
• Cryptocurrency Market Loses $343 Million As Bitcoin Falls to $113k

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