Context and decline

In October 2025, Bitcoin plummeted below $110,000, dragging down more than $250 billion from the crypto market. The correction was driven by the announcement of new 100% tariffs between the U.S. and China, which triggered massive sell-offs in both cryptocurrencies and stock markets. The intraday drop of 11% was one of the most severe since 2022.

Macroeconomic causes

• Geopolitical tensions: the new trade war reduced global risk appetite.

• Restrictive monetary policy: high rates and Treasury bonds at 4.8% diverted capital towards safe assets.

• Regulatory uncertainty: halted the flow of institutional investment in crypto assets.

Outcome: Bitcoin acted as a traditional risk asset, not as a crisis refuge.

Technical factors

• A double top formed in the US$125k–127k zone.

• RSI fell from 68 to 39 (exit from overbought).

• The breakout of the MA100 (~US$110k) triggered massive liquidations of over US$7 billion.

• Sentiment shifted from “greed” (63/100) to “fear” (28/100).

Conclusion: the market was over-leveraged and euphoric, and the macro shock only lit the fuse.

Market reaction

• Retail traders panicked, but whales accumulated BTC.

• The buying volume on exchanges increased by 22% during the drop.

• The event “cleaned” the market of short-term speculative positions.

• On-chain fundamentals (storage in cold wallets and institutional accumulation) remain strong.

Key technical levels

• Immediate support: US$105,000

• Critical zone: US$98,500–92,000 (Fibonacci and historical support)

• 200-day moving average: US$107,000 (technical defense line)

• Main resistance: US$121,800–122,000

• Expected range: US$100k–122k while the market consolidates.

Predictions for Q4 2025

Institution Base Scenario Argument

Citigroup US$133,000 ETF and sustained corporate interest

JPMorgan US$165,000 Rotation from gold + low relative volatility

Standard Chartered US$200,000 Strong institutional inflow + USD weakness

Bearish scenario (Schiff) US$75,000–83,000 Risk aversion and correlation with stocks.

Conclusion

Bitcoin enters the last quarter of 2025 at a turning point:

• If the macro environment improves (pause in rates, lower geopolitical tension), it could resume its path to new historical highs.

• If global uncertainty persists, it will consolidate between 90k–110k.

The market remains divided, but the general consensus is that the correction reinforced the long-term structure and that the 2026 halving could be the next big catalyst.

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