In recent market movements, Bitcoin has retreated to a critical support zone around $110,000, currently trading near $110,854. Analyst Ali Martinez warns of a possible correction toward $96,530 if this level fails to hold. Meanwhile, gold has taken the spotlight, breaking above $4,200 as investors seek refuge from currency devaluation. Market dynamics indicate that capital is shifting toward scarce assets, though the momentum currently favors gold. Analysts anticipate continued short-term volatility, driven by interest rate expectations and fund flows.
The broader market narrative points to an accelerated rotation into limited-supply assets as a hedge against the erosion of purchasing power amid rising debt and monetary easing expectations. Gold’s surge to record levels between $4,186 and $4,200 has been fueled by central bank purchases and anticipated interest rate cuts. Bitcoin, influenced by similar macroeconomic themes, is testing its demand zone around $110,000 after a wave of leveraged position liquidations following its recent peak.
From a technical perspective, maintaining support near $110,000 could stabilize sentiment, but a decisive breakdown would likely target $96,530, signaling a deeper correction and testing the strength of ETF inflows. The price-volume dynamics suggest that the market may take several sessions to fully absorb recent leverage flushes, while structural trends remain tied to monetary policy shifts.
On the macroeconomic front, the direction of the US Dollar Index and the pace of Federal Reserve rate adjustments remain key factors for risk assets. A sustained rate increase could weaken the current narrative, while continued monetary easing would reinforce demand for both gold and cryptocurrencies. Experts note that persistent policy easing could extend the currency devaluation theme into a multi-year trend.
At the micro level, rebuilding leveraged futures positions and ETF fund flows are expected to shape Bitcoin’s short-term direction. Recent price action has shown that macro headlines, rather than crypto-specific news, have been the main market driver. Therefore, traders should exercise caution amid potential shocks or sudden policy shifts. If Bitcoin breaks below consecutive support levels, the $96,530 scenario becomes increasingly likely, while holding the range between $110,000 and $125,000 could preserve recovery prospects.