Bitcoin Drops Below $107,500 as September Kicks Off with Heightened Volatility

Bitcoin ($BTC) has started September 2025 with a significant dip. As per the latest market data, Bitcoin ($BTC) has dropped below $107,500, signifying a very bearish investor sentiment. In this respect, the decline in the market momentum raises the risk of further downside in the near term. However, despite the heightened volatility at the start of the month, there is still a possibility for a substantial recovery.

September Begins with Massive $BTC Sell-Offs as Price Plunges to $107,378

At the moment, based on the price chart, Bitcoin ($BTC) is changing hands below the $107,500 mark. Particularly, the price level of up to $107,378.96 takes into account a 1.32% decrease over the past twenty-four hours. In addition to this, the market capitalization of the flagship cryptocurrency has also slumped to $2.13T, denoting a 1.29% decrease. At the same time, the 7-day performance of Bitcoin ($BTC) presents a 4.76% dip.

In the broader context, on Labor Day, Bitcoin ($BTC) is facing the risk of a substantial price crash. Additionally, the traders are extremely cautious as it seems very difficult for Bitcoin to maintain its price level. Keeping this in view, the $BTC holders are engaging in selling activity amid the growing pressure.

Bitcoin ($BTC) Faces Liquidity Strain Amid Bearish Sentiment

There are still some long-term market participants who expect the U.S. President Donald Trump to begin interest rate cutting by this month’s end or October’s start. Even then, the respective hopes are not enough to enhance the short-term sentiment among investors. In this case, the increased sell-offs are impacting the $BTC liquidity, elevating the apprehensions of additional downturn.

In line with the exclusive market statistics, the overall bearish sentiment around Bitcoin ($BTC) has also influenced its market dominance which has dipped to 57.4%. Thus, the crypto asset, which is deemed as digital gold, is struggling to hold its position above the $107K spot. Nonetheless, the current plunge might offer a crucial buying opportunity as, irrespective of the initial dip in September 2025, Bitcoin could experience a notable recovery in the near future.