Bitcoin News Today: Bitcoin's $122k Slide Sparks 'Shakeout' Debate: Will $130k Rally Resurface?

Bitcoin (BTC), Ethereum (ETH), and altcoins like XRP, DOGE, and ADA experienced sharp declines in late October 2025, with Bitcoin falling below $122,000 after hitting record highs above $126,000. Major altcoins such as XRP ($2.82), DOGE ($0.23), and ADA ($0.78) dropped 4%-7% amid heightened volatility. Analysts attributed the selloff to an "overheated" market driven by aggressive derivatives and ETF inflows, which reached their highest levels of the year. K33's Vetle Lunde noted that the surge in long-positioning without clear macroeconomic catalysts created "elevated risk of short-term consolidation" Bitcoin Dips to USD122k as Crypto Rally Gets Overheated – What Next^[1].

The pullback coincided with a broader risk-off sentiment triggered by the U.S. government shutdown, which exacerbated uncertainty in financial markets. Bitcoin's open interest rose 0.51% in 24 hours, while Ethereum fell below $4,500 to an intraday low of $4,273.56. Over $670 million in crypto liquidations occurred in a single day, with 81% of losses coming from long positions, according to Coinglass Bitcoin, Ethereum, Dogecoin, XRP Fall Amid Government Shutdown^[3]. Deribit's Jean-David Péquignot predicted a potential "shakeout" to the $118,000–$120,000 range, viewing it as a buying opportunity ahead of a potential end-of-year rally above $130,000 Bitcoin Dips to USD122k as Crypto Rally Gets Overheated – What Next^[1].

Technical indicators highlighted oversold conditions for Ethereum, with its RSI hitting levels last seen in April 2025. Historically, such readings have preceded sharp rallies, including a 134% rebound in two months. Ethereum's Q4 performance has averaged +24% over the past four years, with analysts suggesting a potential move toward $7,000–$8,000 if it reclaims $4,000 support Bitcoin, Ethereum and XRP Price Prediction For October 2025^[4]. XRP's price action mirrored Bitcoin's short-term bearish trend, with key support levels at $2.85 and $2.80 under pressure. Analysts warned that failure to hold above $3 could trigger a decline toward $2.65 XRP Price Plummets Again, Is This the Start of a Drastic Drop^[2].

Macro factors, including Fed policy uncertainty and global liquidity trends, further complicated the outlook. Federal Reserve Governor Stephen Miran shifted his view of the neutral interest rate to 0.5%, citing tighter immigration policies and fiscal pressures. Meanwhile, VanEck's Matthew Sigel noted that geopolitical tensions and U.S. tariffs were accelerating Bitcoin's adoption as a neutral payment system in trade, particularly between China and Russia China and Russia Embrace Bitcoin for Trade as US Financial Influence Comes Under Scrutiny^[5].

The selloff also impacted crypto-related equities, with Marathon Digital (MARA) down 4%, Riot Platforms (RIOT) 3%, and Coinbase (COIN) 4%. Institutional investors, however, remained cautiously optimistic, with Deribit's Péquignot and Coinpedia analysts highlighting potential rebounds if short-term volatility subsided Bitcoin Dips to USD122k as Crypto Rally Gets Overheated – What Next^[1]Bitcoin, Ethereum and XRP Price Prediction For October 2025^[4].