Bitcoin News Today: Bitcoin's Big Shift: Geopolitical Shocks Now Drive Price Volatility

Bitcoin steadied around $115,000 in early trading following a volatile weekend triggered by U.S. President Donald Trump's announcement of a 100% tariff on Chinese imports and export controls on critical software. The cryptocurrency plummeted from record highs near $126,000 to as low as $103,800, wiping out nearly $19 billion in leveraged positions in a single day BTC recovers from massive dip, eyes $120K: Check forecast^[1]. The crash was exacerbated by liquidity crunches in crypto futures markets and panic selling, as analysts noted that forced liquidations created a self-reinforcing downward spiral BTC recovers from massive dip, eyes $120K: Check forecast^[1]. By Monday, Bitcoin had rebounded 3.1% to $115,107, with Ethereum and other major altcoins also recovering Bitcoin Price Today: BTC Rebounds to $115K After $19B Crash^[3].

The price action underscored Bitcoin's heightened correlation with global macroeconomic events. Analysts attributed the crash to renewed fears of a U.S.-China trade war, with Trump's remarks triggering a broader risk-off sentiment across equities and commodities BTC recovers from massive dip, eyes $120K: Check forecast^[1]. Anita Ramesh of Aurora Markets highlighted that Bitcoin's behavior increasingly mirrors traditional risk assets, with geopolitical shocks directly impacting its price Bitcoin Price Today: BTC Rebounds to $115K After $19B Crash^[3]. The market's sensitivity to trade tensions and Federal Reserve policy has intensified since 2023, as institutional adoption brought both legitimacy and exposure to macro volatility Bitcoin Price Today: BTC Rebounds to $115K After $19B Crash^[3].

Technical indicators suggest Bitcoin is testing critical levels. The 4-hour RSI approached neutrality at 48, signaling waning bearish momentum, while the MACD lines remain in a bearish region but show potential for a crossover into bullish territory BTC recovers from massive dip, eyes $120K: Check forecast^[1]. Traders are monitoring whether Bitcoin can hold $115,000 as a new support level, with a break above $120,000 potentially signaling a resumption of the upward trend Bitcoin Price Today: BTC Rebounds to $115K After $19B Crash^[3].

Despite the volatility, long-term fundamentals remain robust. ETF inflows into Bitcoin and Ethereum have surged, with U.S. spot ETFs recording $441 million in net inflows on October 8 alone . BlackRock's iShares Bitcoin Trust (IBIT) dominated these flows, adding $426 million in a single day . Institutional demand has also driven Bitcoin treasury holdings to over 3.8 million BTC, valued at $435 billion, as companies like MicroStrategy and Marathon Digital continue accumulating .

The macroeconomic backdrop remains a key influencer. While ETF inflows and on-chain metrics suggest resilience, risks persist from potential trade escalations and policy surprises. Liam Parker of ChainSight Analytics noted that Bitcoin's price discovery process now depends heavily on macro conditions, with a sustained break above $125,000 requiring strong inflows and favorable macroeconomic news Bitcoin Price Today: BTC Rebounds to $115K After $19B Crash^[3].

Outlook: A Fragile Calm

The market is cautiously optimistic, with Trump's softer tone on China and stabilizing Asian markets offering temporary relief. However, analysts warn that further tariff announcements or economic data surprises could reignite turbulence. For now, Bitcoin's recovery hinges on sustained ETF inflows, reduced leverage in the market, and a resolution in U.S.-China trade tensions.