Bitcoin’s price hovered below the $109,000 mark on Friday, pressured by accelerating inflation and profit-taking among institutional investors.
Key Takeaways
- Bitcoin dropped to $109,640, posting a 5.5% decline for the week, as inflation data stirred concerns over future Fed policy.
- The US PCE index rose 2.7%, marking its highest level since February 2025, yet matching economist expectations.
- Institutional profit-taking and slowing ETF inflows added to selling pressure, driving BTC closer to a key support zone.
- Analysts warned that if support between $108,000 and $108,500 fails, BTC could slip to as low as $90,000.
What Happened?
Bitcoin fell sharply at the end of the week, trading near $109,000 after the US released inflation data that failed to spark investor confidence. The Personal Consumption Expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, climbed to 2.7% in August, up from 2.6% in July. Though the figure matched expectations, it intensified worries over whether the Fed would continue with interest rate cuts.
#Bitcoin futures saw another wave of long liquidations as price moved below $111k.
— glassnode (@glassnode) September 26, 2025
This flush of leverage reflects a broad deleveraging event, often resetting market positioning and easing the risk of further cascades.
🔗https://t.co/uEVHqia78z pic.twitter.com/Kmdo52vVxj
Bitcoin Faces Support Test as Inflation Climbs
Market data from Cointelegraph Markets Pro and CoinGecko showed BTC/USD slipping toward the $108,000 mark, threatening a September low. The drop followed a wave of long liquidations in the Bitcoin futures market, highlighting broader market deleveraging.
According to onchain analytics platform Glassnode, this “flush of leverage” may reset trader positioning and reduce the risk of further cascades. Yet, the mood remains cautious. Crypto investor Ted Pillows noted that Bitcoin is hovering just above its support, with upside potential only if $109,000 holds.
- Support Levels: Binance order books showed significant bid strength around $108,200, with short liquidations likely above $110,000.
- Risk Outlook: Should BTC break below current levels, a fall to the $100,000 or even $90,000–$95,000 range is possible, experts warn.
Institutional Investors Take Profits
The inflation report wasn’t the only factor behind the drop. Institutional investors appear to be cashing out, a move some see as a signal that the current rally is cooling off.
Arthur Azizov, founder of B2 Ventures, told crypto.news that Bitcoin’s fall below $109,000 reflects a market slowdown, with declining ETF inflows indicating waning enthusiasm. He revealed that ETF flows fell more than 50% this past week, dropping from $2 billion to just $930 million.
This pullback in inflows weakens one of the key pillars of the recent Bitcoin rally, further exposing the cryptocurrency to downside risk if sentiment deteriorates further.
Fed Outlook Remains Murky Despite PCE Data
The PCE inflation data may have matched expectations, but it delivered little comfort to crypto markets. Although The Kobeissi Letter noted that the Fed is still expected to continue rate cuts, rising inflation has clouded that outlook.
Higher inflation typically pushes central banks to hold off on rate reductions, which could be bad news for Bitcoin and other risk assets that benefit from cheap borrowing and easier financial conditions.
CoinLaw’s Takeaway
In my experience, Bitcoin’s price rarely moves on a single data point, but when multiple factors collide like rising inflation, institutional profit-taking, and thinning ETF demand, we see sharp market reactions like this one. The $109,000 zone is now a battleground. If it cracks, the $100,000 mark will come into focus quickly. I found the ETF inflow slowdown especially telling. Smart money seems to be pulling back, and that’s usually a signal to watch for more cautious moves ahead.
