Bitcoin Drops Below $108,000 Amid Market Pressure
Bitcoin fell to $107,477 earlier this week, losing billions in value. The world’s largest cryptocurrency is testing key support levels. Traders describe this phase as Bitcoin “flirting with danger.”
“Bitcoin is flirting with danger — a move below $108,000 puts the bull market on thin ice,” said Jason Pizzino on October 16, 2025. He added that gold, silver, and stock markets are near all-time highs, suggesting the Bitcoin cycle may not be over.
Reasons Behind the Recent Decline
A major cause of the drop is a wave of liquidations in the crypto futures market. Over $19 billion in leveraged positions were liquidated last week. This forced many traders to sell assets quickly, causing a domino effect.
The sell-off also hit other top cryptocurrencies like Ether, Solana, and XRP. Global economic tensions are adding pressure. Rising U.S.–China trade conflicts, fears of higher interest rates, and warnings of a global correction have made investors cautious.
Farzam Ehsani, Co-Founder and CEO of VALR, told The CryptoTimes: “The escalation of U.S.-China trade rhetoric poses a substantial downside risk to risk assets, including Bitcoin. While Q4 is usually favorable for crypto, this year’s geopolitical uncertainty could override seasonal gains.”
The Crypto Fear & Greed Index has dropped to 28, nearing the “extreme fear” zone.
Key Bitcoin Price Levels to Watch
- $108,000 is a critical support level. Staying above it may stabilize the market.
- A drop below $104,000 could trigger heavy selling.
- A rise above $112,000 might restore confidence and attract buyers.
At the time of writing, Bitcoin traded at $108,890. Its 24-hour trading volume was $86.39 billion, with a market cap of $2.16 trillion.
Despite recent losses, some long-term investors see this dip as a buying opportunity. Bitcoin remains up over 180% year-over-year. Its fundamentals, limited supply, institutional interest, and global demand remain strong.
Ehsani added, “While the Fed Chair suggests the tightening cycle may end soon, economic data remains uncertain. A prolonged U.S. government shutdown could delay inflation and employment reports. This uncertainty complicates the Federal Reserve’s next moves and liquidity outlook.”
Bitcoin’s performance in the coming days will be crucial. The market’s reaction to macroeconomic pressures will determine if this is a minor pullback or a deeper correction.
