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Bitcoin’s Decline: September Slump Contrasted with Fourth Quarter Hopes

Bitcoin’s Decline: September Slump Contrasted with Fourth Quarter Hopes

Bitget-RWA2025/09/27 11:00
By:Coin World

- Bitcoin fell below $110,000 in late September 2025, triggering market concern after a 5% weekly decline. - $1.7B in leveraged liquidations and $484M ETF outflows highlighted fragile positioning amid bearish technical indicators. - A 3.8% Q2 GDP revision and low jobless claims reduced Fed rate-cut expectations, boosting USD and hurting risk assets. - Analysts caution $93,000-$95,000 support levels while noting September's historical weakness (-3.39% average return). - Despite Q4 optimism from LMAX's Kruge

In late September 2025, Bitcoin's value continued to decline, dropping beneath $110,000 and sparking significant concern throughout the market. After reaching a yearly peak of $123,026 in August BTC to USD Exchange Rate History for 2025 [ 1 ], the cryptocurrency encountered renewed downward pressure as technical signals and broader economic conditions combined to intensify negative sentiment. Over the last week, BTC/USD lost almost 5%, with the lowest point in 24 hours hitting $109,500 Bitcoin Price News: BTC Slips Below $110K; Bitfinex … [ 2 ]. This drop wiped out nearly half of the gains from its previous recovery, as traders struggled with the market’s ongoing instability.

There was a notable increase in forced liquidations of leveraged positions, with more than $1.7 billion cleared in just one day. Long positions suffered the most, making up $1.62 billion of the losses, while short positions lost $85.8 million. The sharp decrease in leveraged trading activity underscored the vulnerability of market positions, especially among retail traders who had heavily invested during Bitcoin’s earlier rally. Experts linked these liquidations to both technical breakdowns and changing macroeconomic outlooks.

Analysts from Bitfinex and LMAX Group indicated that if the current downturn continues, Bitcoin could find support between $93,000 and $95,000 Bitcoin Price News: BTC Slips Below $110K; Bitfinex … [ 2 ]. The short-term holder realized price (SHRP), which reflects the average cost for recent buyers, is now close to $108,900—just under the current market price. If this level fails to hold, a deeper pullback could follow, as historical bull market corrections have averaged a 17% drop from peak to trough Bitcoin Price News: BTC Slips Below $110K; Bitfinex … [ 2 ]. On-chain indicators like the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) also pointed to continued bearish momentum, with the RSI at 38 and the MACD showing a bearish crossover.

Broader economic factors added to the selling pressure. The U.S. government revised its second-quarter GDP growth to 3.8% annualized, and jobless claims came in lower than expected, reducing hopes for aggressive interest rate cuts by the Federal Reserve Bitcoin Weekly Forecast: BTC falls sharply as massive … [ 5 ]. The likelihood of the Fed keeping rates steady in September rose to 17%, up from 8% the previous day Bitcoin Weekly Forecast: BTC falls sharply as massive … [ 5 ]. This shift strengthened the U.S. Dollar and put additional pressure on risk assets, including cryptocurrencies. Meanwhile, gold surged past $3,500 to new record highs, drawing capital away from riskier markets Bitcoin Price News: BTC Slips Below $110K; Bitfinex … [ 2 ].

Seasonal trends also weighed on Bitcoin’s short-term prospects. Historically, September has been a challenging month for

, with Coinglass data showing an average return of -3.39%. Although is up 1.17% so far this month, traders remain cautious about a possible reversal. Institutional interest in Bitcoin also appeared to weaken, as U.S. spot ETFs saw $484 million in outflows during the week ending September 26—the first major outflow since late August, potentially signaling a shift in investor sentiment.

Despite the prevailing negative mood, some market observers remain guardedly hopeful. Joel Kruger from LMAX Group pointed out that September often acts as a period of consolidation before a stronger performance in the fourth quarter Bitcoin Price News: BTC Slips Below $110K; Bitfinex … [ 2 ]. He noted that inflows into ETFs, corporate treasury investments, and supportive regulatory developments could help fuel a rally later in the year. Still, this optimism is balanced by the risk of a further drop, especially if the Federal Reserve adopts a more cautious approach at its next meeting.

The broader digital asset market echoed Bitcoin’s losses, with

(ETH) and (SOL) both declining over 4% in the past day Bitcoin Weekly Forecast: BTC falls sharply as massive … [ 5 ]. The total value of the crypto market fell to $3.74 trillion, erasing more than $170 billion in just 24 hours BTC could dip to $107k amid bearish PA: Check forecast [ 3 ]. Altcoins were hit especially hard as the ETH/BTC ratio returned to its level at the start of the year, undoing months of relative strength Bitcoin Weekly Forecast: BTC falls sharply as massive … [ 5 ]. Stablecoins also came under pressure, with Circle’s CRCL dropping 4.4% as investors moved toward safer assets Bitcoin Weekly Forecast: BTC falls sharply as massive … [ 5 ].

As the market processes these changes, focus shifts to the upcoming Personal Consumption Expenditures (PCE) inflation report and the Federal Reserve’s policy decisions. Traders are preparing for more price swings, with the possibility that Bitcoin could test support as low as $107,000 BTC could dip to $107k amid bearish PA: Check forecast [ 3 ]. The interaction of technical signals, macroeconomic trends, and institutional activity will likely shape Bitcoin’s next moves, with both short-term risks and long-term buying opportunities coming into play.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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