Bitcoin dropped below $107,000 on October 17, 2025, extending a week-long decline driven by macroeconomic uncertainty and geopolitical tensions. The cryptocurrency market saw over $1 billion in liquidations, with Ethereum and other tokens also falling sharply. Traders are awaiting the Federal Reserve's meeting for potential rate cuts amid ETF outflows and risk-off sentiment.
On October 17, 2025, Bitcoin slid under $107,000 during Friday's Asian session, reaching as low as $103,550, its lowest since June, according to multiple reports. The price settled around $105,000 to $106,400 by midday, down about 2% to 6% on the day and 13% over the past week. Ethereum traded near $3,700 to $3,830, down 3% to 9%, while tokens like XRP, Solana, BNB, and Cardano's ADA lost 5% to 20% week-to-date, with ADA and Dogecoin down over 20%.
The total crypto market capitalization fell to $3.57 trillion to $3.76 trillion, a drop of 5.5% in 24 hours and erasing around $476 billion to $600 billion since early October. Liquidations totaled $972 million to $1.2 billion in the past 24 hours, with Bitcoin accounting for $345 million to $458 million, mostly long positions, and Ethereum $231 million to $278 million. Spot Bitcoin ETFs recorded $536 million in outflows on October 16, totaling $864 million since Monday, while Ethereum ETFs saw $57 million in withdrawals.
Analysts attributed the sell-off to renewed U.S.-China trade tensions, an ongoing U.S. government shutdown, credit concerns at regional banks like Zions Bancorp and Western Alliance, and liquidity stress. Gold hit records as a safe-haven, contrasting Bitcoin's failure as 'digital gold.' FxPro's Alex Kuptsikevich noted, 'The market is again testing the strength of 3-month support near current levels,' warning of a potential test of the 200-day moving average at $3.5 trillion. SynFutures COO Wenny C. said, 'Altcoins are under pressure as liquidity continues to rotate back into Bitcoin and stablecoins amid risk-off sentiment.'
Despite the rout, some see it as controlled deleveraging. CoinW's Nassar Achkar stated, 'Resilient ETF inflows and whale accumulation are stabilizing markets.' Ledn's John Glover predicted a bear market into 2026 with prices as low as $70,000 to $80,000, while others like Bitwise's Matt Hougan expect the market to shrug off the dip. Futures imply a 65% to 97% chance of a 25-basis-point Fed rate cut at the October FOMC meeting, which could support recovery. CoinMarketCap's fear and greed index stood at 28, signaling extreme fear.