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Bitcoin continued its week-long downturn, dropping to its lowest point since July as renewed trade tensions between the US and China, along with significant fund outflows, prompted another round of liquidations across cryptocurrency markets.
As per data from CryptoSlate, Bitcoin decreased by over 5% in the last 24 hours, reaching a low of $103,300 after trading close to $112,000 earlier this week. Ethereum also experienced a decline, falling 9% to approximately $3,600.
In addition, Binance’s BNB decreased by 11% to $1,048, while XRP, Solana, Dogecoin, Tron, and Cardano each saw losses exceeding 7% during the same timeframe.
Coinglass data indicates that the sell-off resulted in around $1.18 billion in leveraged liquidations over the past 24 hours. Notably, long traders anticipating a market recovery suffered the majority of the losses, totaling about $917 million of the overall amount.
Crypto Market Liquidation on Oct. 17 (Source: CoinGlass)
This decline follows a significant crash in the crypto market that unsettled investor confidence. On Oct. 10, crypto investors faced nearly $20 billion in losses after President Donald Trump threatened a 100% tariff on China.
What triggered Bitcoin’s recent price drop?
The steep market decline can be attributed to a mix of macroeconomic and structural factors affecting the cryptocurrency sector.
Analysts at Bitfinex informed CryptoSlate that markets have become more sensitive to geopolitical events. They highlighted that President Trump’s announcement of new tariffs intensified concerns regarding economic decoupling.
According to them:
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“In the near term, we anticipate episodes of knee-jerk volatility, with any selling pressure in equities affecting crypto, tightening liquidity and impacting leveraged positions. If yield curves steepen and credit risk premiums increase, BTC may experience some profit-taking before any upward movement resumes.”
At the same time, the sentiment among institutional investors seems to be deteriorating, with spot Bitcoin and Ethereum exchange-traded funds (ETFs) experiencing combined outflows of approximately $600 million.
Data from SoSo Value reveals that US spot Bitcoin ETFs saw $536 million in outflows on Oct. 16, marking their largest single-day withdrawal since August.
Ark Invest’s ARKB led the outflows with $275.15 million, followed by Fidelity’s FBTC, which had $132 million withdrawn. Grayscale’s GBTC and Grayscale Mini BTC products recorded outflows of $44.97 million and $22.52 million, respectively, while BlackRock’s IBIT lost $29.37 million.
US Spot Bitcoin ETFs Flows on Oct. 16 (Source: SoSoValue)
Other funds also experienced slight declines, including 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 net flows during this period.
In light of this, Timothy Misir, head of research at BRN, informed CryptoSlate that the change in ETF demand has transformed “a temporary pause into a structural headwind.”
He warned that if the total redemptions surpass $1 billion within 48 hours, or if miner sales resume, Bitcoin might test the $96,000 level before finding stability.
The post Why Bitcoin price just plummeted under $104k to lowest level since June appeared first on CryptoSlate.
