Bitcoin, the world’s largest cryptocurrency, slipped below $110,000 on September 26, 2025, and the market is now caught between two narratives. Some traders see this decline as a normal reset after months of rapid gains, while others worry it could be the start of a deeper fall. The pullback has created uncertainty across the entire crypto market, sparking debates about whether Bitcoin is preparing for a comeback or facing tougher times ahead.
Bitcoin’s price fell more than 3% in a single day, dragging much of the crypto market down with it. Ethereum dropped by nearly 5%, falling below $3,900 for the first time since August. Other major coins, including Solana, also lost ground.
One of the biggest drivers of this decline was a wave of liquidations. More than $1.6 billion in long positions bets that prices would rise were wiped out earlier in the week. In the last 24 hours alone, another $511 million was liquidated across multiple assets. When large numbers of leveraged positions are closed out like this, it often accelerates price declines because traders are forced to sell into falling markets.
At the same time, Ethereum ETFs recorded net outflows, signaling that investors were pulling money out rather than adding fresh capital. This lack of demand has added pressure on Bitcoin and the wider market. Stocks tied to the crypto sector, including Coinbase, Robinhood, MicroStrategy, and Circle, also slipped more than 1%, showing how tightly connected crypto assets and equities have become.
The timing of Bitcoin’s drop is also important. September has historically been a difficult month for risk assets, and this year is no exception. Analysts warn that the U.S. Treasury’s issuance of more T-bills is draining liquidity from the financial system. Less liquidity often means less appetite for riskier investments like crypto. Meanwhile, investors are worried about whether the Federal Reserve will hold back on expected rate cuts after stronger-than-expected U.S. labor and GDP data. If the Fed keeps policy tighter for longer, risk assets such as Bitcoin could continue to feel the pressure.
Bitcoin Price Levels to Watch
The market is now focused on whether Bitcoin can hold $110,000 as a key support level. If it does, optimism could return quickly, especially heading into the final quarter of the year, which has often brought rallies in past cycles. If support breaks, however, the next big test could be around $100,000.
Here’s a simple look at the important levels:
| Price Level | Significance |
|---|---|
| $100K | Major support if selling deepens; potential “line in the sand” |
| $110K | Current support level under pressure |
| $120K | Near-term rebound target if buyers return |
| $150K | Longer-term bullish target if momentum resumes |
Market commentators remain divided. Optimists argue that the liquidations, while painful, have cleared out over-leveraged positions and set the stage for stronger growth. They see a path for Bitcoin to rebound to $120K in October and potentially reach $150K by the end of the year if conditions improve. Skeptics point to ETF outflows and weak buying power as warning signs. They argue that without strong inflows of fresh capital, Bitcoin could struggle to maintain current levels. If Treasury liquidity drains persist, these voices warn, Bitcoin may test $100K or even dip below.
The impact of Bitcoin’s moves spreads well beyond day traders. For retail investors, dips like these can erase paper gains quickly, creating panic selling. Institutions, on the other hand, view these moments as opportunities or warnings. If ETF outflows continue, institutions may hesitate to commit large amounts of capital, at least in the short term. Crypto-related companies also feel the effects. Even small declines in Bitcoin can cause ripple effects in stock prices of exchanges, payment firms, and blockchain companies. Developers, however, often see corrections as a chance to focus on building rather than chasing price action.
Looking Ahead
Short-term, the question is whether Bitcoin can hold the $110K level and attract new buyers. If so, the final quarter of the year could deliver a rebound, especially if seasonal trends repeat and Federal Reserve policy shifts toward easing. Longer-term, some analysts still project Bitcoin could reach $150K or higher by 2026 as adoption grows and ETFs eventually bring in more capital. On the flip side, continued ETF outflows, weak liquidity, or renewed macroeconomic pressures could drag Bitcoin back toward $100K or even $90K.
Bitcoin’s dip below $110K is not just another market move; it highlights the tension between optimism and caution in today’s crypto landscape. Liquidations and ETF outflows have shaken confidence, but they may also pave the way for a healthier rebound. Whether this moment becomes a stepping stone toward higher prices or the start of a deeper correction will depend on how quickly buyers return and how global financial conditions evolve.
For now, Bitcoin sits at a crossroads. Traders, investors, and institutions alike are watching closely to see if the world’s largest cryptocurrency is preparing for another rally or bracing for another fall.
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About the Author: John Brok
