Bitcoin Drops Below $107K, XRP, ADA Down 17% on Week as Traders Await Risk-Taking Mode

Core Insights - Bitcoin (BTC) has fallen below $107,000, reflecting macroeconomic uncertainty and liquidity stress in the crypto markets [1] - The market is testing a three-month support level, with potential movement towards the 200-day moving average at $3.5 trillion [2] - Major cryptocurrencies like Ether (ETH), BNB, Solana, and XRP have seen declines between 5% and 7%, while Dogecoin (DOGE) and Cardano's ADA are down over 20% week-to-date [3] Market Sentiment - Risk markets have turned negative, with traders shifting back to stablecoins and avoiding Bitcoin and altcoins ahead of significant Federal Reserve and geopolitical events [4] - Analysts suggest the current pullback resembles controlled deleveraging rather than panic, with exchange open interest at midyear lows and steady ETF inflows indicating long-term capital stability [5] - Whale accumulation and resilient ETF inflows are contributing to market stabilization, with future movements dependent on the conversion of this capital into new risk-taking [6] Federal Reserve Outlook - The focus is on the upcoming Federal Reserve's October FOMC meeting, where traders anticipate dovish signals following hints from Chair Jerome Powell regarding the potential end of quantitative tightening [6] - Futures markets indicate a 65% probability of a 25-basis-point cut, which could provide extended risk support into the year-end if realized [7]