Bitcoin News Today: Geopolitical Tensions and Leverage Spark $20B Crypto Sell-Off

Bitcoin (BTC) and major cryptocurrencies experienced a sharp decline in late October 2025 amid heightened U.S.-China trade tensions, triggering a $20 billion market wipeout. Bitcoin fell below $105,000 from a high of $126,272, while Ethereum (ETH) dropped nearly 11% to $3,878 before recovering to above $4,100. Solana (SOL), Cardano (ADA), and XRP also saw losses exceeding 30% in some cases, with an altcoin index plummeting as much as 40% within minutes. Analysts attributed the crash to geopolitical risks, overleveraged positions, and regulatory uncertainty, with leveraged traders facing forced liquidations totaling billions in value Economic Times^[1].

Following the sell-off, Bitcoin rebounded to around $115,000, signaling early recovery signs. Technical analysts highlighted key support levels for BTC at $114,571 and resistance at $126,199, with some projecting a potential all-time high of $185,000 if historical cycles align Barchart.com^[4]. Ethereum's support was pegged at $3,745, while BNB, XRP, and DOGE faced varying degrees of technical challenges, including Fibonacci retracement levels and moving average thresholds Argyde^[2].

Altcoin performance remained volatile, with Solana and Cardano stabilizing after steep drops, while smaller tokens like Pepecoin (PEPE) and Talos (T) lost 10–30% in 24 hours. Institutional buying and easing trade tensions partially restored confidence, though risks remained high due to market thinness and geopolitical uncertainties Economic Times^[1]. Analysts like Peter Brandt emphasized the need for caution, noting that Bitcoin's next target could hinge on whether it consolidates within a $107,000–$126,199 range or breaks out decisively Barchart.com^[4].

Longer-term forecasts suggest a bullish trajectory for cryptocurrencies, with Bitcoin potentially reaching $133,000–$178,000 in 2025 and $750,000 by 2026, driven by institutional adoption and macroeconomic factors. Ethereum and altcoins are expected to benefit from Web3 and AI integration, though regulatory changes and trade wars could disrupt momentum Economic Times^[1].

The S&P 500 (SPX) and U.S. Dollar Index (DXY) also reflected market turbulence, with SPX indices showing mixed technical signals and DXY declining for five consecutive days. However, these traditional markets were not the focus of the October 2025 crypto crash, which underscored the sector's susceptibility to geopolitical events and leveraged trading dynamics .