Bitcoin briefly fell below $113,000, marking its first drop since August 2, as investors turned cautious amidst rising inflation, tariffs, and geopolitical tensions. The leading cryptocurrency, down 3.5%, faced pressure from falling equities and overall risk aversion ahead of critical economic data and statements from Federal Reserve Chair Jerome Powell. Bitcoin's decline follows its peak of $124,128 just days earlier, with Ethereum also experiencing a downturn, trading around $4,116. Analysts noted that the market's retreat might stem from profit-taking post-record highs and rising Treasury yields indicating potential interest rate adjustments. The upcoming Federal Reserve minutes are eagerly anticipated, especially after recent inflation indicators showed a 2.7% annual increase, exceeding expectations. This climate has led to fears of another rate hike, further pushing investors away from riskier assets like cryptocurrencies.

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