Bitcoin Price Recovers to $115,000 After Sharp Drop
Bitcoin (BTC) price bounced back to $115,000 on Monday. This followed a steep fall to $102,000 on Friday. Despite the price swings, institutional demand stayed strong last week. This shows confidence in Bitcoin, even as traders remain cautious due to geopolitical tensions and US-China trade issues.
Major Liquidations Hit Crypto Market on Friday
On Friday, the crypto market saw $16.7 billion in long positions and $2.45 billion in short positions liquidated. This was the highest liquidation amount this year. Bitcoin alone had over $4.63 billion in long positions and $687.52 million in shorts wiped out as its price dropped to $102,000. This level was last seen at the end of June.
The price drop followed US President Donald Trump’s announcement to double tariffs on Chinese imports starting November 1. These trade tensions increased uncertainty and lowered demand for Bitcoin. Additionally, the US government shutdown extended into a third week. This hurt investor confidence as Congress remained deadlocked on funding. President Trump blamed Democrats for federal employee layoffs that began on Friday.
Geopolitical Risks Add Pressure on Bitcoin
Trump warned that the US might send long-range Tomahawk missiles to Ukraine if Russia does not end the war soon. He said this would be a new step of aggression. Russia has opposed Ukraine receiving such missiles. These tensions keep geopolitical risks high. This adds pressure on riskier assets like Bitcoin.
Strong Institutional Demand Supports Bitcoin
Institutional interest in Bitcoin stayed strong last week. Data from SoSoValue shows Bitcoin Spot ETFs had a weekly inflow of $2.71 billion. This was the second week in a row with positive inflows. On Friday, Bitcoin ETFs saw only a small outflow of $4.5 million, showing steady investor confidence despite volatility.
On the corporate side, MARA Holdings, which owns 52,850 BTC, bought another 400 BTC on Monday through FalconX.
Signs of Market Stabilization
CryptoQuant data shows Bitcoin’s Estimated Leverage Ratio dropped from 0.28 on October 6 to 0.23 on Monday. This suggests fewer leveraged positions after Friday’s liquidations. The Binance BTC Liquidity Stress Index reached its highest level since early this year. This means liquidity is shifting from short-term traders to larger holders like whales and institutions.
The market appears to be absorbing volatility and rebalancing. If trading volumes fall while Bitcoin stays above $112,000, it could signal stable liquidity and renewed buyer confidence.
Bitcoin Price Outlook
Bitcoin hit a new all-time high of $126,199 on October 6. It then dropped more than 11% to $102,000 on Friday. The price recovered slightly on Sunday, closing above $114,900. On Monday, it hovered around $115,000.
If the recovery continues, Bitcoin may test the key $120,000 level. The Relative Strength Index (RSI) rose to 47, showing weakening bearish momentum. However, the MACD indicator still signals bearish momentum. If Bitcoin falls, support lies near $107,245.
