Bitcoin Plunges To $105,000: Is This A Black Friday In The Making?

Author: Khyathi Dalal | October 17, 2025 09:46am

Bitcoin (CRYPTO: BTC) is in a reset phase, with the largest crypto liquidation event in years and weakening ETF inflows prompting bearish sentiment among investors.

What Happened: Bitcoin hit a new all-time high above $126,000 in early October before reversing sharply due to escalating U.S.–China tariff concerns, causing a historic $19 billion futures deleveraging, one of the largest in crypto history.

Glassnode data shows the reset is characterized by reset leverage, cautious sentiment, and reliance on renewed demand for recovery:

ETF & Market Dynamics:

• SoSoValue data shows U.S. spot Bitcoin ETFs recording $536.4 million in net outflows on Thursday. Ark & 21Shares led with a $275.15 million outflow, followed by Fidelity.
• Spot markets saw high volumes: Binance dominated by selling, while Coinbase showed net buying, suggesting institutional absorption.
• ETF inflows weakened, turning slightly negative (–2.3K BTC this week), signaling demand fragility without panic.

On-Chain Insights:

• BTC retraced below the $117,000–$114,000 supply cluster, where top holders are now at a loss.
• Price currently sits in the 0.85–0.95 quantile range ($108,400–$117,100); failure to hold above $108,000 could indicate deeper structural weakness.
• Long-term holders continue distributing (~0.3 million BTC sold since July 2025), adding sell-side pressure and constraining upside momentum.

Also Read: ‘This Bitcoin Bear Market Will Be Brutal’, Peter Schiff Claims As Gold Hits $4,290

Futures & Options Market:

• Futures open interest has collapsed by over $10 billion, a deleveraging event comparable to May 2021 and the FTX crash in 2022.
• Open interest has rebuilt rapidly to near all-time highs, reflecting quick repositioning.
• Technical indicators show heavy demand for short-term downside protection, while long-dated options remain relatively stable.

Read Next:

• Bitcoin Plummets 5%, Ethereum, XRP, Dogecoin Tumble Over 6% As Crypto Liquidations Top $1 Billion

Image: Shutterstock

Posted In: $BTC