Bitcoin slips back toward the $108K zone as altcoins reel and traders recalibrate
Key takeaways
- Bitcoin is trading around $108,500, extending its recent slide from earlier highs and showing increased vulnerability. As of 10:00 a.m., 23 October, it is trading at $108,426, down 0.18%.
- Ethereum is trading near $3,800, and major altcoins like SOL, XRP, and DOGE are showing a decline. The market sentiment dovetails into a risk-off stance, signaling broader weakness.
- The total crypto market cap continues to hover around $3.65 trillion, down about 0.05% in the past 24 hours.
- The usual “Uptober” optimism is running into headwinds: institutional flows are cautious, and on-chain data point to a corrective rather than breakout phase.
- Macro risks remain elevated, including renewed U.S.–China trade tensions and strong dollar/real-yield dynamics, which are weighing on crypto as it behaves more like a risk asset.
Macro factors at play
Inflation remains sticky and central banks are signaling caution, which is delaying rate cuts and limiting the upside for risk assets, including crypto.
Escalating trade tensions between the U.S. and China are amplifying risk-off sentiment, and with the U.S. dollar index showing strength, crypto is facing added headwinds.
The Financial Stability Board (FSB) flagged the fragmented regulatory environment in crypto as a material risk, a headwind to institutional adoption.
A strengthening U.S. dollar and heightened global trade tensions, especially between the U.S. and China, are also weighing on the broader crypto risk premium.
Support and resistance levels
- Immediate support for Bitcoin lies in the $107K–$109K band. A break below this could expose $103K–$105K as the next downside targets.
- On the upside, resistance is clustered around $113K–$115K; reclaiming these levels would signal a return of confidence.
- Altcoins are more fractured; watch for signs of base-building or increased volume before expecting a broad comeback.
What to watch
- ETF and institutional flows: U.S. spot Bitcoin ETFs have recorded fresh outflows; the next trend reversal in flows could be a key signal of institutional return.
- Market cap and liquidity metrics: A rebound in market cap combined with rising trading volumes would suggest buyers are returning, not just short-covering.
- Macro & USD/real-yield dynamics: Monitor upcoming inflation data, central bank commentary, and DXY movements, all of which heavily affect crypto sentiment.
- Altcoin structure: With altcoins under pressure, keep an eye on ecosystem catalysts for signs of selective recovery. There are also emerging signals of selective interest in the AI and DeFi tokens and networks, like Solana, which is seeing major airdrops and ecosystem events. These can act as early signs of rotation off Bitcoin.
- Regulatory and policy headlines: New regulatory actions or stable-coin frameworks could shift sentiment rapidly; stay alert to enforcement or policy surprises.
- Major institutional infrastructure moves: A noteworthy deal, FalconX acquiring 21Shares (ETF manager), may signal deeper institutional infrastructure build-out in crypto. Since structural upgrades often precede market turns, this is worth flagging.
Market outlook
The market appears to be in a reset and consolidation phase, not yet in a fresh uptrend. Investors with patience may want to:
- Watch for Bitcoin to stabilize around $108K–$110K; a base here could open the door to $115 K+ later this quarter.
- For altcoins: selective strength now might mark the early stage of the next leg, but risk remains high if macro or flow factors deteriorate further.
- Overall: Rather than chasing momentum, this week may reward preparation, positioning, and patience.
Top gainers
Date: 23 Oct. 2025, 10:10 a.m.
Top losers
Date: 23 Oct. 2025, 10:10 a.m.
