Why Bitcoin price just plummeted under $104k to lowest level since June
Bitcoin prolonged its week-long decline, sliding to its lowest level since July as renewed US–China commerce tensions and heavy fund outflows compelled one other wave of liquidations throughout crypto markets.
According to CryptoSlate information, Bitcoin fell over 5% prior to now 24 hours to as little as $103,300 after buying and selling close to $112,000 earlier within the week. Ethereum additionally misplaced floor, falling 9% to round $3,600.
Meanwhile, Binance’s BNB slid 11% to $1,048, whereas XRP, Solana, Dogecoin, Tron, and Cardano every misplaced greater than 7% throughout the identical interval.
Data from Coinglass exhibits that the sell-off triggered roughly $1.18 billion in leveraged liquidations throughout the final 24 hours. Notably, lengthy merchants speculating on a market rebound incurred most losses, shedding about $917 million of the full.
This efficiency comes every week after the crypto market skilled a big crash that rattled investor sentiment. On Oct. 10, crypto traders misplaced practically $20 billion after President Donald Trump threatened a 100% tariff on China.
What precipitated Bitcoin’s newest price drop?
The sharp market downturn could be linked to a mixture of macro and structural triggers impacting the crypto trade.
Analysts at Bitfinex instructed CryptoSlate that markets have turn out to be more and more reactive to geopolitical developments. They famous that President Trump’s confirmation of new tariffs deepened fears of financial decoupling.
According to them:
“In the close to time period, we anticipate bouts of knee-jerk volatility, with any promoting stress in equities spilling over into crypto, tightening liquidity and weighing on leveraged positions. If yield curves steepen and credit score danger premiums widen, BTC might face some profit-taking earlier than resuming any upward trajectory.”
Meanwhile, institutional traders’ sentiment additionally seems to be souring, with spot Bitcoin and Ethereum exchange-traded funds (ETFs) recording mixed outflows of round $600 million.
According to SoSo Value data, US spot Bitcoin ETFs recorded $536 million in outflows on Oct. 16, which is their most vital single-day withdrawal since August.
Ark Invest’s ARKB led the outflows with $275.15 million, adopted by Fidelity’s FBTC, which noticed $132 million withdrawn. Grayscale’s GBTC and Grayscale Mini BTC merchandise recorded $44.97 million and $22.52 million in outflows, respectively, whereas BlackRock’s IBIT shed $29.37 million.
Other funds additionally noticed modest declines, together with Bitwise’s BITB at $20.58 million and VanEck’s HODL with $6.12 million.
Meanwhile, Invesco’s BTCO, Franklin Templeton’s EZBC, Valkyrie’s BRRR, and WisdomTree’s BTCW reported no web flows for the interval.
Considering this, Timothy Misir, head of analysis at BRN, instructed CryptoSlate that the shift in ETF demand has turned “a short lived pause right into a structural headwind.”
He cautioned that if the mixed redemptions exceed $1 billion inside 48 hours, or if miner gross sales resume, Bitcoin might take a look at the $96,000 area earlier than stabilizing.
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