The crypto market witnessed a wave of volatility today, with Bitcoin (BTC) plunging below the critical $108,000 support level, triggering bearish sentiment across the board. The shift comes after a major trader reportedly flipped a $1.25 billion long position into a short, sparking widespread speculation about an incoming correction.
Bitcoin is currently trading around $107,200, down by 1.7% over the last 24 hours.
This strategic position change by institutional players suggests a cautious stance ahead of a key speech by Federal Reserve Chair Jerome Powell, expected later today.
Ethereum Retreats After Brief Surge to $2,700
Earlier this week, Ethereum (ETH) surprised investors with a breakout past $2,700, causing a short squeeze. However, today’s trading session reflects a correction as ETH dropped back to $2,498, showing a 2.4% decline.
Rising exchange reserves and decreasing retail participation point to weakening bullish momentum for ETH.
Market analysts suggest that while Layer 2 activity and developer upgrades remain strong, short-term investor sentiment is growing uncertain.
Solana and Cardano Join the Red Zone
Solana (SOL) experienced a sharp 5% overnight drop, falling below the $172 support. The decline is believed to be triggered by a midnight institutional sell-off, signaling a possible exit strategy.
SOL currently trades at $170.49, down 3.5% from yesterday’s session.
Similarly, Cardano (ADA) dipped by 2.6%, trading at $0.7395 as the broader market cools off.
AI Agents Raise New Concerns for Crypto Security
Experts are warning of a new type of threat in the form of AI agents being used in crypto trading and operations. As crypto platforms integrate AI to power bots, fraud detection, and portfolio automation, concerns grow about unseen vulnerabilities, such as prompt injection attacks and data manipulation.
Crypto’s next major risk may not come from smart contract bugs — but from flawed AI logic.
What to Watch: Fed Chair Powell’s Speech Could Shake Markets
All eyes are now on Federal Reserve Chair Jerome Powell, who will speak later today at 8:40 PM ET. The crypto market, especially Bitcoin and Ethereum, could react sharply depending on his tone around inflation and interest rates.
Traders are bracing for possible rate clues that could either fuel recovery or deepen the correction.