4 Causes Why Bitcoin (BTC) Dumped by $23K in 10 Days

BTC slumped under $104,000 on Friday.

Bear in mind the ‘Uptober’ narrative? October, the month that kicks off Q4, is promised to be a bullish one. There have been excessive hopes for the 2025 version as nicely.

And it began on the correct foot as BTC exploded out of the gate and peaked above $126,000 to chart a brand new all-time excessive. Thus, it had added over $16,000 of worth within the span of simply 10 days. Nevertheless, issues reversed simply as shortly, and it misplaced much more floor in opposition to the dollar within the following 10 days. Listed below are among the potential causes behind this large crash.

Trump-Led Uncertainty

Probably the most important worth collapse, which occurred on the finish of the earlier enterprise week, was largely attributed to international political uncertainty prompted by US President Donald Trump. The POTUS threatened China with a brand new wave of tariffs after accusing its authorities of an absence of transparency in sure areas.

Though such threats have taken place sometimes ever since he took workplace, BTC reacted with an instantaneous correction from over $122,000 to below $117,000. The scenario worsened within the following hours, particularly since futures positions began to get wrecked in a very leveraged market.

The outcomes had been violent to say the least as bitcoin slumped to $110,000 on some exchanges, and all the best way all the way down to $101,000 on others. What’s notably attention-grabbing right here is that the complete calamity may need been one huge misunderstanding between the 2 superpowers. Reviews began to emerge that it was exaggerated, and the stress eased within the following days. With it, BTC’s worth recovered to $116,000.

The main focus then turned to a different flammable geopolitical scene – the Ukraine/Russia battle. On Thursday, Trump met with Russia’s Putin, and BTC began to lose traction because the assembly was going down. On Friday, the POTUS was visited by Ukraine’s Volodymyr Zelenskyy. Reviews indicated that the Ukrainian chief won’t obtain the requested Tomahawk cruise missiles.

It’s additionally value mentioning the US authorities shutdown, which has continued for over two weeks now.

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US Banking Disaster?

The US banking system noticed shades of the 2023 failure of Silicon Valley Financial institution when two regional organizations – Zions Bancorp and Western Alliance – printed some controversial information that stirred worry into buyers. The previous disclosed a $50 million charge-off tied to 2 industrial loans in California, whereas the latter initiated a fraud lawsuit in opposition to a borrower, which fueled doubts about its mortgage portfolio high quality.

Traders had been spooked not solely within the US however additionally in Asia and Europe, as evidenced by the drop in inventory costs on Friday for main banks similar to Deutsche Financial institution, Barclays, and Société Générale.

Though BTC is meant to be the reply to cracks within the conventional monetary system, such crises sometimes hurt it, particularly within the brief time period.

ETF Exodus

After a powerful 9-day interval that began in late September, by which the spot Bitcoin ETFs attracted practically $6 billion, the development reversed on the finish of the earlier enterprise week, with a minor web outflow of $4.5 million.

Nevertheless, the withdrawals intensified on Monday ($326.4 million), Wednesday ($104.1 million), and notably on Thursday when greater than $530 million left these monetary merchandise. Friday was additionally within the crimson, with greater than $366 million leaving the funds.

The entire quantity withdrawn from the US-based ETFs exceeded $1.2 billion for the week, which undoubtedly will increase the stress on the underlying asset.

Gold Up, BTC Down

In instances of uncertainty, buyers are likely to flock to safe-haven belongings. Though this 12 months has had its ups and downs, they’ve proven a considerably totally different strategy. Gold has been the popular funding device for a lot of, which is obvious from its large rally in 2025.

It charts new all-time highs nearly each day, with the newest being at nearly $4,400/oz on Friday. On the identical time, BTC’s efficiency has been fairly underwhelming recently. This might show critics like Peter Schiff proper (no less than for the second) that the valuable metallic continues to be the popular alternative, regardless that many BTC proponents have argued up to now decade that the cryptocurrency is ‘digital gold.’