Bitcoin’s rough weekend isn’t letting up. The cryptocurrency dropped another 2.8% early Monday, slipping to around $109,882. That’s a pretty steep fall, and it seems to have caught a lot of people off guard.
According to data from CoinGlass, the liquidations over the past day have been massive—over $940 million. And most of that was from traders betting the price would go up. Ouch.
Rachael Lucas, an analyst at BTC Markets, pointed out that capital is moving away from risk. “Thin weekend liquidity amplified the swings,” she noted. It makes sense. When fewer people are trading, the moves can get exaggerated.
A Key Level to Watch
What’s perhaps more concerning is where Bitcoin landed. It’s now trading below $110,800. That number might seem random, but it’s actually the average price investors paid for Bitcoin over the last three months.
Analytics firm Glassnode flagged this on social media, suggesting that historically, when Bitcoin can’t hold above this level, it sometimes leads to weaker markets for months. Maybe even deeper price drops. They didn’t sound overly alarmist, just… cautious.
Political Shocks Rattle Traders
And it’s not happening in a vacuum. The news broke after markets closed that U.S. President Donald Trump fired Federal Reserve Governor Lisa Cook. Her resignation letter, posted online, cited allegations of “deceitful and potentially criminal conduct” related to paperwork about her primary residence.
Investors clearly didn’t love the move. The U.S. dollar index initially fell about 1% before recovering some ground. Futures for major U.S. stock indexes also dipped.
Justin Wolfers, an economics professor at the University of Michigan, didn’t mince words online. “Markets don’t think this move helps American business,” he wrote. He called the move “dangerous,” adding that it serves Trump’s interests, but not necessarily America’s. “Our economy is at risk when the President undermines the Fed,” he said.
All Eyes on Economic Data This Week
So now, everyone’s looking ahead. This week brings some big economic numbers that could really shape what the Fed does next.
On Thursday, we get the revised GDP figures for the second quarter. The initial estimate was 3% growth—economists think it might be revised up slightly to 3.1%.
Then there’s the core PCE inflation data. This is the Fed’s preferred gauge for inflation, and it tracks consumer spending. Forecasts suggest it might tick up from 2.8% to 2.9% year-over-year.
If growth comes in weaker than expected, or if inflation is hotter, it could really throw a wrench into the Fed’s suspected plans for a rate cut in September. Suddenly, what seemed like a near-certainty feels a lot less sure. And for a market already on edge, that’s a big deal.
