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The crypto market lost nearly $200 billion in value as escalating trade tensions between China and the United States reignited global risk aversion.
This halted Bitcoin’s fragile recovery after last weekend’s record $19 billion liquidation.
Bitcoin price struggles
Data from CryptoSlate shows the industry’s total market capitalization declined 3% to $3.79 trillion, down from $3.96 trillion the previous day.
Bitcoin has struggled to hold above its $115,000 resistance and slipped over 3% to $110,500, testing a crucial short-term support zone.
Notably, Ethereum, the second-largest crypto asset by market capitalization, mirrored the downturn. ETH dropped 4% below the $4,000 mark before rebounding slightly, while BNB saw a 12% pullback from its recent all-time high to $1201 as of press time.
Meanwhile, other top 10 digital assets, such as XRP, Solana, Dogecoin, Tron, and Cardano, fell more than 5% during the reporting period to deepen the day’s losses.
The broader sell-off followed China’s reported announcement of new sanctions on five US subsidiaries of Hanwha Ocean, one of South Korea’s leading shipbuilders.
The decision effectively banned Chinese entities from interacting with the sanctioned firms and marked a significant escalation in the long-running dispute between Beijing and Washington.
This move is not surprising considering the Chinese authorities had warned in an Oct. 13 X post that “[they] will do what is necessary to protect their legitimate rights and interests.”
Meanwhile, Beijing’s restrictions came just days after US President Donald Trump threatened 100% tariffs on certain Chinese imports in response to new export controls.
ETF outflows reinforce market caution
The macro stress added to structural weakness already visible in crypto markets after the weekend’s liquidation event.
On Oct. 13, US spot Bitcoin and Ethereum ETFs experienced combined outflows of roughly $755 million, reflecting continued caution among institutional investors.
According to SoSo Value data, Bitcoin-linked funds recorded $326 million in redemptions, driven by withdrawals from Grayscale’s GBTC and Bitwise’s BITB.
Notably, other issuers like Fidelity also recorded significant exits from their funds while BlackRock’s IBIT was the sole outlier with fresh capital inflows of about $60 million.
On the other hand, Ethereum ETFs fared worse, with an estimated $428 million in withdrawals led by BlackRock’s ETHA product.
Still, the Bitcoin and Ethereum products continue to enjoy unparalleled success this year, with the funds attracting more than $76 billion in combined inflows since their launch in 2024.
What’s next for BTC price?
Timothy Misir, head of research at BRN, told CryptoSlate that Bitcoin’s immediate technical zone sits between $110,000 and $108,000.
According to him, this area represents the market’s key liquidity band. He noted that a decisive break below this range could open the path toward $104,000, while reclaiming and closing above $115,000 would likely stabilize short-term momentum and keep $125,000 within reach.
Misir also pointed out that falling open interest suggests crypto traders are derisking, which lowers the odds of sudden liquidations but also means any renewed upside will depend on genuine spot demand rather than leveraged flows.
He added that sustained ETF inflows above $500 million per day would serve as the clearest signal of returning strength.
Misir concluded:
“The market is in a risk-management phase: institutional flows have turned neutral-to-negative and leveraged participants have largely exited, leaving price driven by spot reallocations and macro headlines. That reduces both the probability of a clean, immediate breakout and the chance of a leverage-fuelled crash.”
