- Bitcoin slipped under $113K, liquidating $113M in longs after hitting $124K last week.
- SEC probe, tariffs, and Nasdaq weakness pressured crypto markets while gold forecasts rose to $3,700.
- Traders monitor $112K support after BTC closed below EMA50, with next target around $108K.
Bitcoin (BTC) slipped under $113,000 for the first time in over two weeks, wiping out more than $113 million in leveraged long positions. The drop followed the recent all-time high of $124,176 reached last Thursday.
At the time of writing, BTC price traded at $113,514 with a daily turnover of $44.66 billion. The price is lower by 1% over the past 24 hours and down 5% for the week. The correction has renewed debate about whether Bitcoin’s advance remains intact or if deeper levels will be tested.
Pressure intensified after reports that the U.S. Securities and Exchange Commission is investigating alleged fraud and manipulation at Alt5 Sigma. The firm recently partnered with World Liberty Financial, a $1.5 billion platform linked to former President Donald Trump.
World Liberty has raised around $550 million through token offerings. Public disclosures show Trump earned $57.4 million from his stake, while Eric Trump is expected to join Alt5 Sigma’s board. The news added to investor caution, contributing to the sell-off.
Economic Headwinds and Tariff Concerns
Equity weakness added further strain. The Nasdaq 100 fell 1.5% after research from MIT NANDA showed that most companies are struggling to achieve revenue growth from artificial intelligence projects.
At the same time, Washington introduced 50% import tariffs on 407 products containing steel and aluminum. Economists warned that costs for consumer goods may rise, adding pressure on supply chains. Investors also turned to gold, with UBS lifting its forecast to $3,700 by September 2026, citing a weaker dollar and questions about U.S. fiscal policy.
Derivatives Market Signals Fear
Bitcoin derivatives showed heightened demand for protection. The 30-day options delta skew (put-call) rose to 12%, the highest in four months. In normal conditions, the measure ranges from -6% to +6%. Levels above 10% point to strong demand for puts.
A similar spike occurred in April when Bitcoin dropped below $74,500. That move was followed by a 40% recovery in the weeks after, leaving traders alert for another potential rebound.
Moreover, analyst Captain Faibik noted that Bitcoin’s daily close is now below the EMA50 at $114,900. He said:
“Bitcoin is very close to the 111,880 support level. If bulls fail to defend it, the next target will likely be around 108k. However, if Bitcoin holds above the 112k support then retest of EMA50 (114.9k) is possible.”
Market attention is now centered on whether $112,000 can serve as a stable floor in the current correction.
