Bitcoin (BTC) Price Drops Below $106,000 After Hitting All-Time High of $109,754

After hitting a record of $109,754, BTC quickly fell to about 3% to the $106,000 area.

Bitcoin (BTC) dropped from a record high of $109,754 to the $106,000 area as traders booked some gains from the rapid rally, while a U.S. treasury bond auction also had a knock-on effect on risk assets.

The world’s leading cryptocurrency was trading at about $107,000 at press time, having slid about 3% over the past 24 hours, according to CoinDesk's Bitcoin Price Index. It had risen to as high as $109,754 earlier in the day, before slipping back from the key $110,000 level.

Other cryptocurrencies also took a hit, with ether falling to the $88,000 area.

Bitcoin's price action may have been sparked by traders taking profits on the quick rise — bitcoin was higher by nearly 50% since bottoming about five weeks ago.

But also likely contributing was the ripple effect of a U.S. treasury bond auction going awry and hitting risk assets. A sale of 20-Year bonds by the U.S. Treasury department saw weak demand, sending the yield on the 30-year Treasury spiking to 5.07%, its highest level in more than two years.

The news saw the Nasdaq tumble 1.5% in just an hour. The S&P 500 declined 1.3%.

"This is a ticking time bomb, swept under the rug, "longtime fixed-income veteran turned bitcoin analyst Josh Mandell said, ahead of this afternoon's poor bond sale.

"We used to talk about the disaster that would ensue if ever there was a ‘MISSED AUCTION’ in 30-yr bonds. A missed auction means that there were not enough bids to cover the offering… Were it not for the Fed, we would be experiencing a failure to roll over bonds right now which leads to default."

Kirill Kretov, trading automation expert at CoinPanel, said that liquidity from exchanges has been significantly removed since late 2024, "making the market thinner and more reactive," leaving bitcoin's price vulnerable to wild swings.

"Structurally, there’s room for explosive upside," he said, but "a sharp correction can happen at any moment."

The $110,000 level has emerged as a key battleground in the current market structure, well-followed crypto trader Skew noted in an X post, describing it as the critical zone between a local high and a potential breakout point.

According to Skew, there's a noticeable concentration of supply around this level, with Binance perpetuals showing a skewed ask-side order book and a buildup of short positions.

"All point to a huge amount of liquidity here, usually pivotal for the market," Skew said.