- Bitcoin prices dropped to their lowest point in more than three months on October 17.
- The cryptocurrency fell about 18% from its recent all-time high recorded earlier in October.
- Market analysts cite new U.S. tariffs on China and financial uncertainty in the U.S. banking sector as key reasons for the decline.
- Large-scale liquidations and high leverage in the crypto markets accelerated the downward movement.
- Short selling and falling demand among new bitcoin holders have added additional pressure to Bitcoin’s price.
On October 17, Bitcoin’s value declined to its lowest level since June, reflecting an extended losing streak for the world’s largest digital currency. Bitcoin reached as little as $103,516, according to Coinbase data from TradingView, with losses driven by multiple market events.
The digital asset dropped about 18% from its previous high of $126,300 set on October 6, according to Coinbase data. The decline marked Bitcoin’s most significant dip since June 23.
Analysts pointed to several factors behind the downturn. They included new U.S. tariff announcements from President Donald Trump, broader negative sentiment across global assets, and financial trouble among U.S. regional banks. Jacob Joseph of CoinDesk Data said in an email, “Bitcoin and the broader digital asset market have largely trailed traditional financial assets in recent weeks, including Gold and major equity indices.”
Olivier Mammet of Gemini.com/” aria-label=”Gemini”>Gemini explained that the drop began after President Trump’s new tariffs on China rattled the market: “BTC is down about 16% from its peak around $126,000 last week. The initial drop was related to President Trump’s new tariffs on China that rattled the whole market beyond crypto, but the impact was mostly felt within the crypto space that had good leverage in it.” According to Mammet, on October 17, $19 billion in leveraged positions were liquidated across exchanges, contributing to the rapid decline.
Banking news also affected the crypto market. On October 16, shares of Western Alliance Bancorp and Zions Bancorporation dropped after revealing financial losses, with Western Alliance announcing a $50 million loss from two loans. Marc P. Bernegger of AltAlpha Digital commented, “Reports of losses at US regional banks like Zions Bancorp and Western Alliance due to troubled loans have spilled over into broader financial markets, echoing 2023’s banking stresses and eroding confidence in assets like Bitcoin as well.”
Short traders have taken the lead in the bitcoin futures market since October 14, according to Julio Moreno of CryptoQuant. “Short positions have been dominating the futures market basically since October 14, and putting additional downward pressure on the price,” he noted. Moreno also observed declining spot demand for bitcoin—meaning fewer new buyers are entering the market.
In summary, Bitcoin’s sharp decline in October was fueled by a mix of macroeconomic uncertainty, troubles in the banking sector, high levels of leverage, and reduced demand among new investors.
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