Why Crypto Market Is Down Today? Bitcoin Price Drops To $117K

The crypto market took a sharp hit today, with most major tokens posting heavy losses. Bitcoin fell below $117,000, Ethereum plunged by 25.17% to $3,650, and other altcoins like Solana and XRP followed the same trend.

The sell-off came after a surprise $130 million outflow from Bitcoin ETFs, breaking a 12-day streak of steady inflows. With prices hitting recent highs, some traders also locked in profits, adding to the pressure.

Another factor weighing on sentiment is the upcoming speech by Fed Chair Jerome Powell, which could influence the outlook on interest rates. Many investors are holding back until they hear what Powell has to say.

Not Overheated Yet: Market Still Has Room to Breathe

While prices are falling, things aren’t looking disastrous. According to on-chain data, the market isn’t in panic mode.

CryptoQuant analyst Axel Adler Jr notes that Bitcoin is still trading within what he calls the “growth zone.” This is the range between the Investor Price Median at $92,000 and the Hype Alert Threshold at $139,000.

“We’re not in the danger zone of excessive speculation,” Adler said on X.

In simpler terms, this means people are still holding or gradually buying, not chasing wild gains or panic selling. That’s usually a good sign for market stability.

The Advanced Sentiment Index is sitting at around 64%, which shows a positive outlook, but not overconfidence. If Bitcoin can stay above the $92,000 mark, it’s likely to keep support from long-term holders. This creates a strong base, even if prices remain volatile in the short term.

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What to Watch Next

With Powell’s Tuesday speech coming up, all eyes are on what the Fed will signal next. If interest rates stay high for longer, crypto could face more pressure. On the other hand, any sign of easing could bring a fresh wave of buying.

Still, given the current sentiment and on-chain strength, there’s room for Bitcoin to climb gradually, as long as things don’t get too overheated.

Even after today’s sharp drop, Bitcoin isn’t showing signs of panic or irrational hype. As long as it holds above key support levels, the rally may just be taking a pause, not ending.

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