Bitcoin slips below $110K as liquidation fears and macro headwinds weigh on sentiment
Key takeaways
- The market is absorbing aftershocks from last week’s brutal $19B liquidation event, which is still impacting investor confidence.
- Bitcoin dropped below $110K, triggering over $524 million in liquidations across crypto markets. As of 9:00 a.m., it is trading at $109,098, down 2.26% in the past 24 hours.
- The global crypto market cap is down to $3.69T. Meanwhile, the Fear and Greed Index, which measures the prevailing sentiment in the crypto market, is currently at 28, indicating “Fear.”
- All the top cryptos by market cap are trading in the red, including BNB, SOL, TRX, and XRP.
- Options data suggests traders are positioning for further downside, with hedging rising.
- Although momentum wavered, accumulation by mid-sized wallets and institutional interest persists, hinting at latent support.
- Broader regulatory pressure is mounting: the G20’s FSB flagged “significant gaps” in crypto rules, underlining global oversight risks.
- Federal Reserve Governor Michael Barr warned about risks stemming from the burgeoning stablecoin sector, adding to macro uncertainties.
Macro factors at play
Investor sentiment is increasingly tethered to macro cues. The recent U.S.–China trade rhetoric flare and hawkish central bank expectations amplify fears of a risk-off shift. Meanwhile, regulatory warnings from the FSB spotlighting fragmented crypto rules to U.S. officials raising alarms about stablecoin stability have intensified caution across markets.
If global trade tensions remain in check and central banks signal a more dovish stance, Bitcoin could find firmer footing. But any surprises, be it a hawkish Fed or regulatory clampdowns, could reignite volatility across both crypto and traditional assets.
Support and resistance levels
Bitcoin is currently defending the $110K–$112K support zone. A breakdown below this may expose $107K and then $105K–$106K as the next stops. On the upside, resistance is clustered around $116K–$117.5K, with a breakout beyond $121K–$123.8K opening the door toward $130K+.
What to watch
- Bitcoin ETF outflows vs Ethereum inflows: Bitcoin ETFs recorded $104 million in net outflows, while Ethereum funds saw $169 million in inflows, signaling a potential rotation toward Ethereum.
- Massive BTC Wallet Movement: A dormant wallet transferred 2,000 BTC ($220M+) in recent hours, a move that could signify institutional repositioning or accumulation.
- New Bitcoin purchases by whales: Reports suggest $102.5 million in fresh Bitcoin buys, driven by stablecoin inflows and re-accumulation by large holders.
- Declining institutional participation: Recent ETF outflows and weakening flows into Bitcoin investment products suggest fading institutional appetite amid market jitters.
- Regulatory overhang: The FSB (G20’s financial watchdog) warned of “significant gaps” in global crypto regulation, which could fuel regulatory risks and impede institutional confidence.
- Uncertainty over leveraged ETF approvals: The SEC expressed uncertainty around approving new 3×/5× leveraged ETFs, creating ambiguity around the future of high-leverage crypto products.
- Macro and policy events to watch: The upcoming Fed conference on payments, stablecoins, and tokenization may introduce surprises, while rising U.S.–China tension and trade headlines remain wildcards.
Market Outlook
The market appears to be in a fragile consolidation phase. If Bitcoin can hold above $110K and reclaim $116K–$117.5K, it may aim toward $125K+. But vulnerabilities are plentiful: regulatory uncertainty, macro pressures, and weak momentum could drag prices back to support regions.
Volatility remains the default. In the coming days, success will hinge on the balance of capital flows, on-chain conviction, macro cues, and regulatory clarity.
Top gainers
Date: 17 Oct. 2025, 10:30 a.m.
Top losers
Date: 17 Oct. 2025, 10:30 a.m.
