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.
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.
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.
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.
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.”
