Bitcoin price threatens to drop below $112K – Is that the bottom?

Takeaways from the conference:

• Bitcoin’s option market is a source of extreme anxiety, but history shows that there are significant potential rebounds.

• The global economic pressures caused by US tariffs on trade have negatively affected the traders’ mood.

BitcoinBTC() dropped below $113,000, for the first two-week period. This surprised traders and led to the liquidation $113 million of leveraged long positions. This sharp drop followed Thursday’s all-time record high of $124,176, which raised questions as to whether or not the bull market was over. The macroeconomic climate is becoming more uncertain.

SEC investigates AI corporate disappointments

Bitcoin price has fallen after news that US Securities and Exchange Commission, or SEC is looking into stock manipulation and possible fraud by Alt5 Sigma. Alt5 Sigma recently partnered US President Donald Trump. World Liberty Financial In a deal worth $1.5 billion.

World Liberty’s website, which lists Donald Trump as President “co-founder emeritus,” In two public token sale, the platform raised about $550,000,000 and marketed itself as DeFi/Stablecoin. Trump reported earning $57.3 million in June from his investment in World Liberty Financial. Eric Trump, meanwhile, is set to join Alt5 Sigma’s Board.

The Nasdaq dropped by 1.5% after MIT NANDA. researchBased on 150 interviews conducted with corporate executives and 300 deployments of artificial intelligence in public, the study found that 95% failed to see rapid growth in revenue from AI pilot projects.

US import duties and a weakened confidence in the Fed

A new US import duty of 50% on 407 additional products containing aluminum and steel was another factor that influenced risk-aversion. These include items such as plastics, specialty chemicals and car parts. Economists are concerned about disruptions in supply chains and increased consumer prices.

UBS Investment Bank lifted its gold CNBC predicts a $3,700 price by September 2026. UBS’ strategists predict that gold prices will rise due to the weakening dollar, Federal Reserve policy and economic growth below trend. Outlook is also driven by concerns from investors over the US budget deficit, and about Fed’s independence.

The demand for Bitcoin derivatives to protect against a possible economic recession and its impact on Trump’s World Liberty Financial companies has risen. Demand for protection against a fall in the price of Bitcoin has risen on derivatives markets. BTC options On Friday the skew-metric became bearish and continued to degrade, reflecting increased investor caution.

This is the highest it has been in four months. In neutral conditions, the indicator usually oscillates between +6% and -6%. This reflects an equalized pricing for both call and put options. The levels above 10% indicate extreme fear, but they are seldom sustained.

Related: Bitcoin ‘liquidity zones swept’ but uptick in open interest hints at BTC recovery

The previous spike in 13% delta skew was on April 7 when Bitcoin dropped under $74,500 for first time in 5 months. Investors that took the risks saw a 40% gain over the next month, as Bitcoin rose to $104,150 on May 8.

Bitcoin’s bullish run is still going strong. Fear often exceeds rational expectations. The cryptocurrency could even profit from possible outflows on the stock exchange, indicating that the current market turmoil does not negate its longer-term bullish trends.

The article does not provide legal advice or investment recommendations and it is intended for informational purposes only. This article is solely for informational purposes. It does not represent or reflect Cointelegraph’s views.