Bitcoin Falls Below $108,000 Amid Global Tensions
Date: 2025-10-21 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
The price of Bitcoin fell below $108,000, down 3.2% in 24 hours. On October 20, the asset rose above $111,000, but the gains quickly turned negative amid trade tensions between the US and China.
BTSE Chief Operating Officer Jeff May noted that high volatility will persist as traders reduce risks ahead of upcoming negotiations between the two countries. He added that even if the leaders reach a compromise, tensions will not be completely resolved.
The correction also affected altcoins: Ethereum lost 4.8%, BNB 6%, and Solana 4.5%. Investors are also withdrawing funds from crypto funds. According to SoSoValue, $40.47 million was withdrawn from Bitcoin ETFs, and $145.68 million from Ethereum instruments. The Fear and Greed Index fell to 34, reflecting growing market caution.
Investors are awaiting the release of US inflation data, which could influence the Federal Reserve's future actions. According to CME FedWatch, the probability of a 25 basis point rate cut is estimated at almost 99%.
The total amount of market liquidations in the past 24 hours reached $322.59 million. By comparison, the crypto market crash on October 11 resulted in the liquidation of $19 billion in positions. Analysts at TD Cowen believe that despite the financial losses suffered by investors, the digital asset infrastructure has demonstrated resilience. They noted that even with the largest single-day liquidation in history, most exchanges continued to operate smoothly.
Experts estimate that weak tokens suffered the heaviest losses, while Bitcoin and Ethereum held up better. Bitcoin briefly lost up to 15%, but ended the day down only 8%. TD Cowen maintains its positive outlook, expecting Bitcoin to rise to $141,000 by December 2025.
Experts also noted growing global interest in cryptocurrencies. In Japan, the number of registered digital asset accounts increased to 7.9 million, prompting the country's financial authorities to reconsider restrictions on bank investment in Bitcoin.
Meanwhile, analyst Willy Woo suggests that the next "crypto winter" will differ from previous cycles. He believes the market will experience the impact of a global recession for the first time, rather than just factors like halvings or central bank policies.
Wu notes that the 2001 and 2008 downturns occurred before Bitcoin's emergence, and it remains to be seen how the world's first cryptocurrency will perform during the economic downturn—whether it will fall alongside tech stocks or confirm its status as digital gold.
According to him, the market may already be signaling a peak, or Bitcoin has yet to correct. On October 17, the asset already fell below $105,000, demonstrating continued nervousness among market participants.
