4 Reasons Why Bitcoin (BTC) Dumped by $23K in 10 Days

Remember the ‘Uptober’ narrative? October, the month that kicks off This fall, is promised to be a bullish one. There have been high hopes for the 2025 version as effectively.

And it began on the fitting foot as BTC exploded out of the gate and peaked above $126,000 to chart a brand new all-time high. Thus, it had added over $16,000 of worth in the span of simply 10 days. However, issues reversed simply as rapidly, and it misplaced much more floor in opposition to the buck in the next 10 days. Here are a number of the potential causes behind this large crash.

Trump-Led Uncertainty

The most important value collapse, which occurred on the finish of the earlier enterprise week, was largely attributed to world political uncertainty prompted by US President Donald Trump. The POTUS threatened China with a brand new wave of tariffs after accusing its authorities of an absence of transparency in sure areas.

Although such threats have taken place often ever since he took workplace, BTC reacted with a direct correction from over $122,000 to below $117,000. The state of affairs worsened in the next hours, particularly since futures positions (*4*) in a very leveraged market.

The outcomes have been violent to say the least as bitcoin slumped to $110,000 on some exchanges, and all the best way all the way down to $101,000 on others. What’s notably attention-grabbing right here is that the whole calamity may need been one big misunderstanding between the 2 superpowers. Reports began to emerge that it was exaggerated, and the stress eased in the next days. With it, BTC’s value recovered to $116,000.

The focus then turned to a different flammable geopolitical scene – the Ukraine/Russia conflict. On Thursday, Trump met with Russia’s Putin, and BTC began to lose traction because the assembly was going down. On Friday, the POTUS was visited by Ukraine’s Volodymyr Zelenskyy. Reports indicated that the Ukrainian chief won’t obtain the requested Tomahawk cruise missiles.

It’s additionally price mentioning the US authorities shutdown, which has continued for over two weeks now.

US Banking Crisis?

The US banking system noticed shades of the 2023 failure of Silicon Valley Bank when two regional organizations – Zions Bancorp and Western Alliance – revealed some controversial information that stirred worry into traders. The former disclosed a $50 million charge-off tied to 2 industrial loans in California, whereas the latter initiated a fraud lawsuit in opposition to a borrower, which fueled doubts about its mortgage portfolio high quality.

Investors have been spooked not solely in the US however additionally in Asia and Europe, as evidenced by the drop in inventory costs on Friday for main banks akin to Deutsche Bank, Barclays, and Société Générale.

Although BTC is meant to be the reply to cracks in the standard monetary system, such crises sometimes hurt it, particularly in the quick time period.

ETF Exodus

After a powerful 9-day interval that began in late September, in which the spot Bitcoin ETFs attracted practically $6 billion, the development reversed on the finish of the earlier enterprise week, with a minor web outflow of $4.5 million.

However, the withdrawals intensified on Monday ($326.4 million), Wednesday ($104.1 million), and notably on Thursday when greater than $530 million left these monetary merchandise. Friday was additionally in the purple, with greater than $366 million leaving the funds.

The complete quantity withdrawn from the US-based ETFs exceeded $1.2 billion for the week, which undoubtedly will increase the stress on the underlying asset.

Gold Up, BTC Down

In instances of uncertainty, traders are likely to flock to safe-haven belongings. Although this 12 months has had its ups and downs, they’ve proven a considerably totally different method. Gold has been the popular funding device for a lot of, which is obvious from its large rally in 2025.

It charts new all-time highs nearly each day, with the newest being at nearly $4,400/oz on Friday. At the identical time, BTC’s efficiency has been fairly underwhelming these days. This might prove critics like Peter Schiff right (at the least for the second) that the valuable metallic continues to be the popular selection, regardless that many BTC proponents have argued in the previous decade that the cryptocurrency is ‘digital gold.’

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