Bitcoin falls below $112,000 as 'cautious tone' sweeps over market

Market Overview - Bitcoin (BTC) fell below $112,000, declining by 2%, while Ethereum (ETH) and Solana (SOL) experienced larger declines, marking a turbulent week for the crypto market [1] - Ether dropped approximately 5% to below $4,000, its lowest level since August, as Ethereum ETFs faced net outflows in the last 24 hours [1] Liquidation and Market Sentiment - A significant liquidation of over $1.6 billion in long positions earlier this week has created a negative sentiment among investors, with an additional $511 million liquidated across all crypto assets in the past 24 hours [3] - The downward pressure on prices is attributed to insufficient buying power and further long liquidations, compounded by corrections in the broader equity market [2] Seasonal Trends and External Factors - September is noted as a seasonally volatile month for crypto, although the last quarter of the year typically brings positive trends [4] - The U.S. Treasury has been refilling its General Account by issuing T-bills and bonds, which acts as a liquidity drain for crypto, potentially reducing demand for risk assets like Bitcoin [5] Impact on Crypto-Related Stocks - The decline in Bitcoin and Ether prices has also affected crypto-related stocks, with trading platforms like Robinhood and Coinbase each dropping more than 1% [5]