Bitcoin slips back toward the $108K zone as altcoins reel and traders recalibrate
Key takeaways
- Bitcoin ETF outflows and a leverage shakeout (altcoin liquidations) weigh down the crypto market.
- Bitcoin (BTC) has pulled back to around $108K, retreating from earlier highs near $126K and undercutting key support levels. As of 10:00 a.m., 22 October, BTC is trading at $108,503.
- Ethereum (ETH) is down approximately 10% this month, while Solana (SOL) and other major altcoins are also posting declines, signaling broader weakness.
- This brings the overall crypto market cap to $3.65T, down 1.27% in the last 24 hours.
- The market narrative of “Uptober” (crypto’s typically bullish October) is being challenged: institutional flows remain cautious and on-chain metrics point toward a corrective phase, not a breakout.
- Macro risks remain elevated: the recent U.S.–China trade tensions and liquidity concerns continue to weigh on crypto, which is acting more like a risk asset again.
Macro factors at play
With inflation remaining stubborn and central banks expressing caution, rate-cut expectations are being dialed down, which may slow immediate upside but also suppress speculative froth.
The trade war flare-up between the U.S. and China has triggered a risk-off tone across asset classes, and crypto has felt the impact given its growing correlation with broader markets.
The U.S. dollar index is showing strength, which tends to exert downward pressure on crypto, yet this time the effect may be counter-balanced by renewed institutional accumulation.
Trade and regulatory headlines remain in focus: as agencies execute large crypto asset seizures and explore new payment-system frameworks, risk sentiment remains elevated but not panic-driven.
Recent large-scale liquidations and weakness in altcoins reflect shaken confidence: volumes remain muted, and rebound attempts have struggled to gather momentum.
Support and resistance levels
- Immediate support for Bitcoin lies near $107K–$109K; a sustained break below could expose $103K–$105K levels.
- On the upside, resistance is clustered around $113K–$115K, and reclaiming that would be a bullish sign that confidence is returning.
- Altcoins are more fractured: look for clear signs of base‐building or volume increases as the first signal of an altcoin cycle restart.
What to watch
ETF flow patterns: U.S. spot Bitcoin ETFs recorded $40.5 million in net outflows on Monday, extending a streak of red‐flow days. Tracking whether ETF flows reverse to net inflows will be a key signal of institutional return.
Total market cap and liquidity metrics: Crypto market cap dipped to approximately $3.6 trillion, raising concerns of a short‐term downtrend. Watch for a recovery in market cap combined with rising volume—this suggests buyers returning rather than just short‐covering.
Macro and dollar/Real yield dynamics: A rising U.S. dollar index and elevated real yields continue pressuring crypto as a risk asset. Monitor upcoming inflation prints, central bank commentary, and DXY movements as these macro cues heavily ripple into crypto.
Institutional rotation and wallet activity: Big money is increasingly using regulated vehicles to “fold” crypto wealth into mainstream finance. For example, BlackRock is noted as drawing large‐scale holders. On‐chain data like large wallet moves and exchange inflows/outflows will help confirm whether this rotation is actual or just talk.
Altcoin setup: Major alt coins like Solana are showing significant declines, signaling both risk and potential upside if they stabilize. Watch for altcoin ecosystem catalysts such as network upgrades and major partnerships that could spark selective rebounds.
Regulatory and policy headlines: Regulatory events are increasingly consequential: generic ETF listing standards were recently expanded by the US SEC, opening the door for more crypto funds. Keep an eye on enforcement actions, stablecoin frameworks, and cross-border policy shifts; any of these can shift risk sentiment substantially.
Market outlook
This appears to be a consolidation and reset phase, not necessarily the start of a new uptrend. For investors willing to stay patient:
- A stable recovery base forming around $108K–$110K for Bitcoin could set the stage for a move toward $115K+ later this quarter.
- If the market breaks support, albeit liquidity is still present, the risk is a drop into the low $100Ks.
- For altcoins: showing strength now in this environment could mean being ahead of the next leg, but the downside risk is higher if macro conditions deteriorate further.
Volatility remains the default. This phase is more about preparation, positioning, and patience rather than chasing momentum.
Top gainers
Date: 22 Oct. 2025, 10:20 a.m.
Top losers
Date: 22 Oct. 2025, 10:20 a.m.
