Bitcoin News Today: Bitcoin Stabilizes at $115k as ETFs Counter Trade War Sell-Off
Bitcoin steadied around $115,000 in early October 2025 after a volatile weekend marked by a sharp price correction triggered by escalating U.S.-China trade tensions. The cryptocurrency had previously surged to a record high above $126,000 in early October before retreating amid a wave of liquidations and market uncertainty. President Donald Trump's announcement of 100% tariffs on Chinese imports and export controls on critical software sent shockwaves through global markets, causing BitcoinBTC-- to plummet below $102,000 within hours [7]. The total cryptocurrency market capitalization dropped from $4.30 trillion to $3.74 trillion in a single day, with over $19 billion in leveraged positions liquidated .
The crash exposed vulnerabilities in centralized price oracles and exchanges, with Binance's stablecoins and wrapped tokens depegging significantly. Binance's futures insurance fund deployed $188 million to stabilize the market, while altcoins like IOTXIOTX-- and XRPXRP-- saw over 90% declines [2]. Despite the turmoil, institutional investors continued to accumulate Bitcoin through ETFs, with U.S.-listed spot Bitcoin ETFs recording $3.24 billion in net inflows for the week ending October 3. BlackRock's IBIT led with $1.8 billion in inflows, while Fidelity's FBTC and Bitwise's BITBBITB-- also saw substantial demand .

Bitcoin's implied volatility index (BVIV) reached a 2.5-month high of 42%, reflecting heightened expectations of price turbulence. Historically, October and November have delivered strong returns for Bitcoin, averaging 6% and 45% gains, respectively, as seasonal patterns suggest a rebound after the October drawdown [1]. Analysts noted that Bitcoin's current consolidation around $115,000 could signal a base-building phase, with the 200-day simple moving average ($106,800) and STH cost basis ($114,000) acting as critical support levels [4].
Institutional adoption continued to gain momentum, with Morgan Stanley and Wells Fargo expanding crypto access to all client accounts. Bitcoin ETFs now hold 1.5 million coins, representing 7.2% of total supply, as macroeconomic factors like U.S. money supply growth and the "debasement trade" reinforced demand for Bitcoin as a hedge against currency dilution . Bitwise predicted that Q4 ETF inflows could surpass the $36 billion record set in 2024, driven by broadening institutional participation and favorable macroeconomic conditions .
The market's resilience was further underscored by the TimeValue indicator, which signaled a potential bottom amid outflows, and the Crypto Fear & Greed Index, which hit "Extreme Fear" levels but historically precedes relief rallies. While short-term volatility persisted, analysts emphasized that Bitcoin's bull cycle remained intact, with the potential for a sustained upward trend if macroeconomic pressures abated and institutional demand continued to grow [2].
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