Bitcoin has suddenly dropped almost 2%, bringing it down to around $108,000 as the markets get ready for important U.S. inflation data. The sharp drop after a strong upward trend surprised a lot of traders. But there are a few interconnected factors that explain the chaos and give us a hint of what might happen next.
Liquidations and Market Anxiety
A lot of long positions being sold off is one of the main reasons Bitcoin’s value has dropped. According to derivatives data, more than $23 million in leveraged long bets were lost in just a few hours on June 10. Not only did this cause selling pressure, but it also brought prices closer to the important $105,000 support zone. A lot of analysts are keeping a close eye on this level now.
Peter Brandt, a veteran trader, added to the cautious mood by asking if Bitcoin is getting ready for another correction like the one it had in 2022, when it fell by a huge 75%. Even though that scenario is still just a guess, it shows how traders in a highly leveraged market are feeling uneasy in general.
Is Bitcoin $BTC following its 2022 script and setting up for a 75% correction? Doesn't hurt to ask this, does it? pic.twitter.com/BAywkhSwgy
— Peter Brandt (@PeterLBrandt) June 10, 2025
In the meantime, it seems normal for things to cool off after a recent rise from $95,000 to $112,000. People are starting to take profits, especially those who hold for a short time. This small correction may be the break Bitcoin needed before its next leg after weeks of going up.
The Big Picture: Inflation, Interest Rates, and More
Bitcoin is also feeling the effects of macroeconomic tension, not just technical ones. Investors are waiting for new U.S. inflation data, especially the Consumer Price Index (CPI) and Producer Price Index (PPI) reports, which are likely to affect what the Federal Reserve does next. If inflation stays high or goes up unexpectedly, rate cuts may be put off. This is something that risk assets like Bitcoin are very sensitive to.
At the same time, people around the world are getting more worried about the U.S.-China trade situation and the tightening of credit in general. These changes are making crypto markets cautious, and altcoins are also falling.
Some analysts are still hopeful, even though the price has gone down. If the next jobs and inflation reports show signs of getting better, the Federal Reserve might be more likely to cut interest rates later this year. That would probably help Bitcoin and other risky assets in the medium term.
This week’s drop in Bitcoin’s price isn’t surprising, and it doesn’t mean the currency is going to fail. It shows a healthy correction in a market that was too hot, along with caution in the economy as a whole and pressure to sell. This week’s economic data will have a big impact on whether this is a short-term dip or the start of a deeper pullback.
Right now, people are looking at the $105,000 mark. Holding this support could calm people’s feelings. If it breaks below it, it could go down even more. No matter what, Bitcoin’s long-term story stays the same: it’s volatile but strong.
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