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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
09/22/2025

Bitcoin Drops Sharply to $112,000, Signs of Bull Cycle "Exhaustion"

Bitcoin (BTC) just went through a sharp correction, dropping 4% to $112,000, triggering over $1.6 billion in long liquidations across the market. Of that, BTC alone saw $277 million liquidated, while Ether (ETH) accounted for $480 million. In total, roughly 402,730 traders were caught in the sudden selloff. Analysts say this pullback signals that Bitcoin is entering a "cycle exhaustion" phase. Several on-chain indicators are warning that BTC's upward momentum may have already faded. Specifically

Bitcoin Drops Sharply to $112,000, Signs of Bull Cycle "Exhaustion"

Bitcoin (BTC) just went through a sharp correction, dropping 4% to $112,000, triggering over $1.6 billion in long liquidations across the market. Of that, BTC alone saw $277 million liquidated, while Ether (ETH) accounted for $480 million. In total, roughly 402,730 traders were caught in the sudden selloff.

Analysts say this pullback signals that Bitcoin is entering a "cycle exhaustion" phase. Several on-chain indicators are warning that BTC's upward momentum may have already faded. Specifically:

  • SOPR (Spent Output Profit Ratio) is declining, signaling that profit margins on Bitcoin transactions are shrinking and raising the likelihood of a deeper correction.
  • Sharpe ratio is weaker than in 2024, meaning risk-adjusted returns are lower, making Bitcoin less attractive to institutional investors.
  • The taker buy/sell ratio across all exchanges sits at -0.79, indicating sellers are in control and reflecting a shift toward bearish sentiment among traders.

Analysts are drawing comparisons to January 2025, when BTC hit roughly $109,000 before falling 32% to $74,000 over the following three months. This suggests the market is currently in a sensitive zone, with selling pressure mounting and BTC's price structure showing signs of weakness.

Adding to the concern, the Fed's rate cut last week — once expected to be a catalyst for BTC — failed to push prices higher, reinforcing the view that Bitcoin's bull cycle may have run out of steam. Many analysts believe that if BTC struggles to recover, altcoins could become the market's next focal point in the near term.

For now, traders are advised to closely monitor liquidity levels around the $110,000–$112,000 range before making any moves, while also considering risk management in the face of heightened volatility.