The crypto market entered last weekend under heavy selling pressure. Bitcoin briefly dropped to around $110,000 on Friday as nearly $20 billion worth of leveraged positions were wiped out in derivatives markets — marking one of the largest single-day liquidations of the year.
Analysts say the correction wasn’t driven solely by technical breakdowns, but also by Trump’s new tariff announcement against China, which fueled a global flight from risk assets.
Trump’s Tariffs Trigger a Chain Reaction in Crypto
Trump’s renewed tariff threats against China instantly flipped global market sentiment from risk-on to risk-off.
The sell-off that began on Wall Street quickly spread to crypto, where investors rushed to unwind leveraged positions. Within hours, nearly $20 billion in Bitcoin futures were liquidated.
Most of these liquidations hit overleveraged long positions, sending BTC tumbling toward the $110,000 zone.
The chain reaction was most visible on Binance, OKX, and Bybit, where open interest plunged by more than 30% within 24 hours.
Analysts describe the move as a “healthy reset” that cleared out overheated leverage, though others warn that it doesn’t necessarily signal a definitive bottom. Some experts argue that macro-driven shocks like this highlight Bitcoin’s structural volatility — suggesting the storm may only just be starting.
Analysts Say the Bottom Isn’t In Yet — Eyes on $118K Support
Following the sharp correction, most analysts agree that Bitcoin has not yet formed a solid bottom.
They believe the recent flush-out represents a short-term cooling phase, while broader macro pressures still threaten the market’s stability.
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Ray Salmond: The sell-off cooled off speculative leverage, but this isn’t the “true bottom.” He expects Bitcoin to range between $110,000 and $118,000 in the near term.
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Stockmoney Lizards: Predicts a possible dip to around $118,000, followed by a technical rebound once selling pressure fades.
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Ted Pillows: Notes that buyers must defend the $115,000–$117,000 zone for bullish momentum to return.
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Chris Weston (Pepperstone): Emphasizes that this move reflects a broader shift in global risk sentiment, not a crypto-specific event — geopolitical headlines will remain key.
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Independent analysts point out that October has historically been a recovery month for Bitcoin, though short bursts of volatility may interrupt the rebound.
What’s Next for Bitcoin? Analysts Warn Volatility Isn’t Over
Experts see potential for a short-term technical rebound after the $20 billion wipeout, but the market remains fragile. Holding above $110,000 is seen as crucial; losing that level could open the door for a retest below $100,000.
Historically, October has been one of Bitcoin’s stronger months, which gives some traders hope for a gradual recovery. Still, macro and political risks could limit any upside momentum.
Key Scenarios in the Short and Medium Term
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Short term: If BTC holds above $110,000, a rebound toward $115,000–$118,000 appears likely.
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Medium term: Continued geopolitical tension — especially between the U.S. and China — could trigger new waves of selling.
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Long term: As leverage cools and on-chain fundamentals strengthen, Bitcoin may gradually stabilize above the $120,000 zone.
Analysts agree that panic selling should be avoided, as the market’s latest drop looks more like a natural reset than a full-blown collapse.
