Bitcoin Retreats to $111, Putting Pressure on Cryptocurrency Market

• Bitcoin plummets to lowest level since July
• Altcoins continue to decline with Ethereum and XRP down
• Total capitalization of cryptocurrencies loses US$200 billion

Bitcoin saw another sharp pullback at the start of the week, trading below $111.196, its lowest level since July 10. After briefly hitting the $117 range on Friday, buoyed by remarks from Federal Reserve Chairman Jerome Powell, the asset quickly lost momentum and fell again over the weekend.

On Friday, BTC had plummeted to below $111, but momentarily reacted to Powell's speech, which suggested future interest rate cuts. The reaction was immediate, with the price jumping to over $117. However, this appreciation was short-lived, and the asset fell again on Sunday, to a negative $110.680.

Early Monday morning, the downward movement intensified, with Bitcoin once again trading below $111. Even with a slight recovery to $113, bears maintain control of the market, pushing BTC back to $111.196 by press time. The cryptocurrency's market capitalization also suffered, falling to $2,225 trillion. BTC's dominance over altcoins is around 56%.

Major altcoins followed the pullback. Ethereum (ETH), which recently hit a new all-time high of $4.950, fell more than 3% and is trading around $4.600. XRP, meanwhile, was rejected at the $3,10 level and is now trading below the $3 support line.

Other crypto assets such as SOL, ADA, TRX, DOGE, XLM, and LINK also saw significant declines. Tokens such as SUI, LTC, AAVE, PEPE, ENA, MNT, OKB, UNI, and ETC recorded even steeper losses, with daily losses of between 7% and 8%.

In aggregate, the total capitalization of cryptocurrencies lost around US$200 billion in the last 24 hours, falling to approximately US$3,930 trillion.