Bitcoin Plummets Amidst $1.18 Billion in Cryptocurrency Liquidations Impacting Markets

Bitcoin’s week-long downturn continues, hitting its lowest point since July owing to escalating US–China trade tensions and significant fund withdrawals, leading to further liquidations in the crypto markets.

As reported by CryptoSlate, Bitcoin dropped more than 5% in the last 24 hours, reaching a low of $103,300 after hovering around $112,000 earlier this week. Ethereum also faced losses, falling 9% to approximately $3,600.

Additionally, Binance’s BNB declined by 11% to $1,048, while XRP, Solana, Dogecoin, Tron, and Cardano each suffered losses of over 7% during this timeframe.

Data from Coinglass reveals that the recent sell-off resulted in about $1.18 billion of leveraged liquidations in just 24 hours, with long traders—betting on a market rebound—sustaining the bulk of losses, totaling around $917 million.

This downturn follows a significant crash experienced by the crypto market last week, which unsettled investors. On Oct. 10, crypto investors saw nearly $20 billion wiped out after President Donald Trump threatened a 100% tariff on China.

What triggered Bitcoin’s recent price drop?

The steep decline in the market can be attributed to a mix of macroeconomic and structural factors affecting the crypto sector.

Analysts from Bitfinex informed CryptoSlate that markets are increasingly sensitive to geopolitical changes. They emphasized that President Trump’s announcement of new tariffs heightened fears regarding economic separation.

The analysts stated:

“In the near term, we anticipate quick fluctuations in response to market conditions, with equity sell-offs spilling into crypto, tightening liquidity and impacting leveraged positions. If yield curves steepen and credit risk premiums increase, BTC may see some profit-taking before any upward trend resumes.”

Moreover, institutional sentiment also seems to be declining, as spot Bitcoin and Ethereum ETFs recorded total outflows of roughly $600 million.

SoSo Value reports that US spot Bitcoin ETFs faced $536 million in outflows on Oct. 16, marking their largest single-day withdrawal since August.

Ark Invest’s ARKB led the outflows with $275.15 million, followed by Fidelity’s FBTC with $132 million withdrawn. Grayscale’s GBTC and Grayscale Mini BTC products saw outflows of $44.97 million and $22.52 million, respectively, while BlackRock’s IBIT lost $29.37 million.

Other funds also experienced slight declines, like Bitwise’s BITB at $20.58 million and VanEck’s HODL at $6.12 million.

On the other hand, Invesco’s BTCO, Franklin Templeton’s EZBC, Valkyrie’s BRRR, and WisdomTree’s BTCW recorded no net flows during this period.

In light of these developments, Timothy Misir, head of research at BRN, communicated to CryptoSlate that the change in ETF demand has evolved “a temporary pause into a structural headwind.”

He warned that if combined redemptions surpass $1 billion within 48 hours, or if miner sales resume, Bitcoin might test the $96,000 threshold before settling.