- Bitcoin drops below $105K amidst financial instability and macroeconomic pressures.
- Massive liquidations occurred, with $19B wiped in open interest.
- Despite the shock, 90% of Bitcoin supply remains profitable.
Bitcoin fell below $105,000 on October 17, 2025, reaching a 15-week low amidst macro volatility, U.S. regional bank concerns, and global trade tensions.
This event highlights Bitcoin’s vulnerability to external economic factors and has triggered significant liquidations, affecting market dynamics and investor sentiment.
Bitcoin has fallen below $105,000, marking a 15-week low triggered by global trade tensions and U.S. bank instability. This drop sparked significant market liquidations and deleveraging, drawing comparisons to 2023’s financial stress episodes.
Long-term holders maintained their positions, although leverage traders faced liquidations. Over $19B in open interest was forced into liquidation. Industry analysts describe the action as a clean-up phase to address excessive leverage.
The fallout led to a sharp decrease in Bitcoin’s price, temporarily reaching as low as $101,000. Spot and futures volumes spiked significantly, indicating high market activity during the sell-off.
Karim AbdelMawla noted the move was macro-driven, stressing Bitcoin’s continued behavior as a risk asset. Concurrently, gold prices rose, signalling investors’ shift towards traditionally safer assets in uncertain times.
Historical data from on-chain analytics provider Glassnode suggests parallels with past collapses, though a larger percentage of Bitcoin remains profitable now. This indicates healthy long-term accumulation despite current volatility in the market.
Less than 65% of supply was in profit during Terra & FTX collapses (2022), but 90% of Bitcoin is still in profit now. This is a large deleverage event, not a total market unwind.
Insights indicate possible stabilization in Bitcoin markets as exchange balances continue to decline. Analysts predict future price recovery, contingent on global economic conditions and stakeholder reactions to ongoing financial pressures.
Glassnode Insights
