Bitcoin (BTC) is facing a tough week as we approach the end of the third quarter. The top cryptocurrency is still trying to recover from a major sell-off earlier in the week that caused prices to dip sharply.

Right now, Bitcoin is trading around $111,600. That’s a drop of over 5% in the past seven days, which means more than $120 billion has been wiped from its market value. In the last 24 hours alone, Bitcoin’s price slipped by 1.39%, although trading activity jumped by over 26%, reaching $61.35 billion.

An AI-powered tool called Finbold’s AI Signals, which uses language models and market momentum data, has shared its prediction for Bitcoin’s price as the quarter closes. The tool estimates Bitcoin may fall slightly to around $110,167 — about 1.19% lower than where it is now.

Among the AI models used, GPT-4o was the most optimistic, forecasting a small rise to $112,000 (+0.45%). On the other hand, Claude Sonnet 4 predicted a drop to $108,500 (-2.69%), and Grok 3 estimated a fall to $110,001 (-1.34%).

This price pressure comes after a wave of forced liquidations earlier this week. Over $1.5 billion in leveraged crypto positions were wiped out in just a few days. Adding to investor worries, U.S. Federal Reserve Chair Jerome Powell recently warned that there’s no “risk-free” approach to managing interest rates and inflation. In his speech on September 23, Powell said if the Fed lowers rates too quickly, inflation could come back stronger. But if they keep rates high for too long, jobs and the economy could take a hit.

The recent downturn isn’t limited to Bitcoin. Ethereum (ETH), the second-largest cryptocurrency, has also taken a hit — falling 4% to around $4,010, marking its lowest level in seven weeks.

Exchange-traded funds (ETFs) are playing a big role in market movement right now. On September 23, Bitcoin ETFs saw a positive inflow of $241 million, showing investor interest. In contrast, Ethereum ETFs had more than $100 million in outflows as investors pulled back.

As we near the end of Q3, all eyes are on whether Bitcoin and the broader crypto market can stabilize or if further losses are ahead. Keep an eye on trading volumes, ETF flows, and Federal Reserve signals for clues on where the market is heading next.