Bitcoin experiences another decline, resulting in a $200 billion loss: Will BTC maintain the $110,000 level or drop to $104,000?

The cryptocurrency market experienced a decline of nearly $200 billion in value as rising trade tensions between China and the United States reignited global risk aversion.

This development interrupted Bitcoin’s fragile recovery following last weekend’s unprecedented $19 billion liquidation.

Bitcoin price challenges

Data from CryptoSlate indicates that the total market capitalization of the industry fell by 3% to $3.79 trillion, down from $3.96 trillion the day before.

Bitcoin has faced difficulties maintaining its position above the $115,000 resistance level, dropping over 3% to $110,500, thereby testing a vital short-term support area.

Significantly, Ethereum, the second-largest cryptocurrency by market capitalization, reflected the downturn as well. ETH decreased by 4% below the $4,000 threshold before experiencing a slight rebound, while BNB encountered a 12% decline from its recent all-time high to $1201 at the time of reporting.

Additionally, other leading digital assets within the top 10, including XRP, Solana, Dogecoin, Tron, and Cardano, experienced declines exceeding 5% during the reporting period, exacerbating the day’s losses.

The broader sell-off followed China’s reported announcement of new sanctions targeting five US subsidiaries of Hanwha Ocean, a prominent South Korean shipbuilder.

This decision effectively prohibited Chinese entities from engaging with the sanctioned companies and represented a significant escalation in the ongoing conflict between Beijing and Washington.

This action was anticipated, given that Chinese authorities had cautioned in an Oct. 13 X post that “[they] will do what is necessary to protect their legitimate rights and interests.”

Simultaneously, Beijing’s restrictions were implemented just days after US President Donald Trump threatened 100% tariffs on specific Chinese imports in response to new export controls.

ETF outflows heighten market caution

The macroeconomic stress compounded the structural weaknesses already evident in the cryptocurrency markets following the liquidation event over the weekend.

On Oct. 13, US spot Bitcoin and Ethereum ETFs experienced combined outflows of approximately $755 million, indicating ongoing caution among institutional investors.

According to SoSo Value data, Bitcoin-linked funds saw $326 million in redemptions, primarily driven by withdrawals from Grayscale’s GBTC and Bitwise’s BITB.

Notably, other issuers such as Fidelity also reported significant exits from their funds, while BlackRock’s IBIT was the only exception, attracting fresh capital inflows of around $60 million.

Conversely, Ethereum ETFs performed worse, with an estimated $428 million in withdrawals, primarily led by BlackRock’s ETHA product.

Nonetheless, Bitcoin and Ethereum products continue to achieve remarkable success this year, with the funds garnering over $76 billion in combined inflows since their launch in 2024.

What’s next for BTC price?

Timothy Misir, head of research at BRN, informed CryptoSlate that Bitcoin’s immediate technical range lies between $110,000 and $108,000.

He stated that this zone represents a key liquidity band for the market. He noted that a significant break below this range could pave the way toward $104,000, while reclaiming and closing above $115,000 would likely stabilize short-term momentum and keep $125,000 within reach.

Misir also highlighted that decreasing open interest suggests that cryptocurrency traders are reducing risk, which diminishes the likelihood of sudden liquidations but also implies that any renewed upward movement will rely on genuine spot demand rather than leveraged flows.

Bitcoin and Ethereum Open Interest (Source: Julio Moreno/X)

He added that sustained ETF inflows exceeding $500 million per day would be the clearest indicator of returning strength.

Misir concluded:

“The market is in a risk-management phase: institutional flows have turned neutral-to-negative and leveraged participants have largely exited, leaving price driven by spot reallocations and macro headlines. That reduces both the probability of a clean, immediate breakout and the chance of a leverage-fueled crash.”

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