Bitcoin Flash Drop — Range-Bound Near-Term, Watch $110K–$120K

I see Bitcoin’s brief rally to $124,089 and the subsequent drop below $117,500 as a sharp profit-taking episode rather than a systemic breakdown. The $227M in liquidated longs was painful, but futures premiums around 9% and a neutral options delta skew show positioning wasn’t overheated.

Macro noise — hotter US PPI and slightly reduced rate-cut odds — played a role, but the larger immediate catalyst was the US Treasury’s comment ruling out expanded BTC purchases, which removed a potential policy bid. With US debt levels high and central-bank balance-sheet paths still uncertain, I expect muted enthusiasm until clearer policy signs emerge.