Bitcoin Price Drops Below $110,000 Amid Trade Tensions and Reduced Demand
Bitcoin was trading at $108,733.66 at press time, down 2% intraday, reflecting trade tensions and easing debt levels. The cryptocurrency’s price has been impacted by falling demand, with US-traded spot Bitcoin ETFs seeing net outflows of around $104 million on October 15, according to data from Farside Investors. This removal of recent support for spot bids has contributed to the correction in Bitcoin’s price.
Major altcoins have followed Bitcoin’s decline, with Ethereum falling 1% to $3,949.92 and Solana falling 1.85% to $190.21. Other notable cryptocurrencies, such as BNB and XRP, have also experienced losses, with BNB falling 1% to $1,151.47 and XRP falling 1.25% to $2.37. Cardano and Dogecoin have posted steeper losses, with Cardano falling 1.5% to $0.6582 and Dogecoin falling 1.6% to $0.1929.
Macro Headwinds and Liquidations
The outflows from Bitcoin ETFs coincided with broader weakness in risk assets due to escalating trade tensions between the U.S. and China over export controls on rare earths. China expanded its export restrictions on rare earths this week, targeting critical raw materials for the semiconductor, defense, and electronics industries. The new controls have extraterritorial reach, prompting Washington officials to warn of accelerating economic “decoupling” between the two nations.
These headlines pushed the price of Bitcoin below the $111,000-$110,000 range and triggered a cascade of liquidations in the Bitcoin futures markets. Nearly $500 million in long positions were liquidated within 24 hours, with $405 million of that amount made in the last trading session alone, according to Coinglass data. Markets took a risk-off stance as headlines highlighted new port fee measures for US ships and coordinated G7 efforts to counter China’s export restrictions.
Flight to Safety
Against this backdrop, gold hit a new all-time high of $4,250, reflecting the flight to safety that has not benefited Bitcoin despite its positioning as a hedge against currency devaluations. Traders are now watching the $107,000 to $110,000 technical range for Bitcoin’s next directional move. A clear break below this support zone risks triggering additional liquidation-related selling pressure as the cryptocurrency sits at the intersection of reduced institutional demand and increased geopolitical uncertainty.
At press time, 7:15 p.m. UTC on October 16, 2025, Bitcoin is ranked No. 1 by market capitalization, and the same goes for its price, down 2.83% in the last 24 hours. Bitcoin has a market capitalization of $2.15 trillion with a 24-hour trading volume of $82.75 billion. The entire crypto market is valued at $3.67 trillion with a 24-hour volume of $213.78 billion. Bitcoin dominance is currently at 58.71%.
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