Bitcoin Price Plunges Amid Inflation Fears and Fed Uncertainty

The recent dip in Bitcoin's price to $107,383 has raised concerns about a potential collapse to $75,000. The latest US Personal Consumption Expenditures (PCE) data showed core inflation climbing 2.9% year-over-year in July, its highest since February. This has kept rate-cut expectations in check and weighed on the market.

Analysts point to whale distributions and liquidations of leveraged positions as accelerators of the decline. The combination of weak sentiment, fragile liquidity, and macro headwinds sets the stage for Bitcoin's next move. The daily chart shows that Bitcoin is trading just under $108,000, sitting close to the lower Bollinger Band around $106,300.

The middle band (20-day SMA) is at $113,970, now acting as resistance. For bulls to regain control, BTC needs to break back above this level. Until then, momentum favors continued downside pressure. A decisive break below $100,000 support could trigger mass liquidations and a liquidity crunch.

A fall to $95,000-90,000 is more realistic in the short term, while a crash to $75,000 would require a prolonged bearish macro cycle or a systemic event in crypto markets. The upcoming jobs report and the Federal Reserve's September policy decision will be crucial in determining Bitcoin's next move.