Bitcoin Dips Below $110K Amid US-China Tensions and $40.5M ETF Outflows

• Bitcoin drops 2.96% to $107,982 due to geopolitical uncertainties from U.S.-China relations.

• Ethereum follows suit, declining 3.57% to $3,890 after peaking at $4,190.

• Spot Bitcoin ETFs record $40.5 million outflows; last week saw $1.23 billion, per SoSoValue data.

Bitcoin price dip below $110k in 2025 hits amid US-China tensions: ETFs see outflows as investors react. Explore causes, impacts on crypto, and expert insights. Stay informed—subscribe for updates! (152 characters)

Why is Bitcoin’s Price Dipping Below $110,000 in 2025?

Bitcoin price dip below $110,000 stems primarily from heightened uncertainties surrounding U.S.-China relations, particularly ahead of the late October 2025 meeting between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea. At the time of writing on October 21, 2025, Bitcoin trades at $107,982, marking a 2.96% decline from the previous day’s close after reaching an intraday high of $111,000. This pullback follows a fleeting recovery on Monday, October 20, 2025, when the cryptocurrency briefly climbed to $111,549, ending a week-long downward trend according to data from CoinMarketCap.

Spot Bitcoin ETFs also recorded $40.5 million in withdrawals amid the U.S.–China tension

Bitcoin, the largest crypto currency by market capitalization, is back below $110k today as it loses 2.96% of its gains from the previous day. At the time of writing, Bitcoin is trading for $107,982, down from its intraday high of $111k.

The dip is as a result of traders reacting to the uncertainty surrounding the upcoming meeting between the U.S. President Donald Trump and Chinese President Xi Jinping, scheduled for late October in South Korea. Meanwhile, this is after Bitcoin had a short rebound on Monday to $111,549 after a whole week of losing streak.

Other cryptocurrencies are also following similar price action. For instance, Ethereum now trades for $3,890. This is a 3.57% drop from the previous day when it recovered above $4000 to a daily peak of $4190, according to CoinMarketCap.

What Are the Current Impacts of U.S.-China Tensions on Cryptocurrency Markets?

The ongoing U.S.-China tensions are amplifying volatility across the cryptocurrency sector, with Bitcoin leading the decline as investors adopt a risk-averse stance. According to market analysts at CoinMarketCap, global trade concerns from the impending presidential dialogue have prompted a sell-off in risk assets, including digital currencies. Ethereum, the second-largest cryptocurrency, mirrors this trend, trading at $3,890 after a 3.57% drop from its recent high of $4,190, reflecting broader market sentiment.

Historical data from similar geopolitical events, such as past U.S.-China trade disputes, shows that Bitcoin can experience short-term corrections of up to 5-10%, as reported by financial research firm Chainalysis. Expert observers note that while cryptocurrencies were once viewed as hedges against traditional finance, escalating international frictions continue to tie their performance to global economic indicators. “Geopolitical risks like these remind us that crypto markets are not isolated from world events,” states a report from Bloomberg Intelligence, emphasizing the need for diversified portfolios during such periods.

Furthermore, the ripple effects extend to institutional products. Spot Bitcoin exchange-traded funds (ETFs) have seen consistent outflows, signaling waning confidence among large investors. Data from ETF tracker SoSoValue indicates that Ethereum ETFs experienced even steeper withdrawals of $145.7 million in the last 24 hours alone. This comes after Bitcoin ETFs recorded $1.23 billion in net outflows last week—the second-highest weekly figure on record—highlighting how external pressures can swiftly erode recent gains.

Frequently Asked Questions

What Caused the Recent $40.5 Million Outflow from Spot Bitcoin ETFs?

The $40.5 million outflow from spot Bitcoin ETFs over the past 24 hours, as tracked by SoSoValue, is largely attributed to investor reactions to U.S.-China tensions ahead of the October 2025 presidential meeting. This follows a pattern of caution, with last week’s $1.23 billion outflows representing the second-largest weekly loss. Institutional investors appear to be reallocating amid uncertainty, per CoinMarketCap analytics. (48 words)

How Has the Bitcoin Price Dip Affected Ethereum and Other Cryptos?

The Bitcoin price dip below $110,000 has led Ethereum to fall 3.57% to $3,890, after it briefly surpassed $4,000. Other altcoins are experiencing similar downward pressure due to correlated market dynamics. As Bitcoin often sets the tone for the sector, this correction highlights interconnected risks, but Ethereum’s resilience could support a quicker rebound if tensions ease, according to standard market observations from financial platforms like CoinMarketCap. (72 words)

Bitcoin ETF Sees $40.5M Outflow 

According to data from SoSoValue, spot Bitcoin ETFs recorded $40.5 million in net outflows over the last 24 hours, while Ethereum ETFs saw $145.7 million move out. Last week, Bitcoin ETFs posted $1.23 billion in outflows, which was their second-largest weekly loss on record.

Meanwhile, Veteran trader Peter Brandt suggests that Bitcoin’s recent rally which saw it reached a new high of $126k early this month may have reached its top after an impressive 8.2X price increase since its previous low.

“IF Bitcoin has topped (hey trolls, the word ‘IF’ is an English qualifier), nobody can whine that an 8.2X advance cheated you.” he said in his tweet.

In short, this suggests that the buying momentum might be over, and Bitcoin might be preparing for a downtrend correction soon. 

Peter Brandt, a veteran commodities trader with over 40 years of experience, shared this perspective on October 20, 2025, via his social media account. His analysis draws on technical patterns observed in Bitcoin’s chart, where the 8.2-fold increase from prior lows raises questions about sustainability. While Brandt qualifies his view with “IF,” it underscores the cautious outlook among seasoned market participants. Reports from financial outlets like Reuters echo this, noting that such rallies often precede consolidations in volatile assets like Bitcoin.

Beyond ETFs, the broader market context includes institutional strategies. For example, recent treasury expansions by firms like Strategy, which added 168 BTC to reach 640,418 BTC, demonstrate selective accumulation even amid dips. This move, as detailed in corporate disclosures, reflects a long-term bullish stance despite short-term pressures. Official blockchain data from explorers like Blockchain.com confirms these holdings, adding credibility to ongoing adoption trends.

As of October 21, 2025, Bitcoin’s market capitalization stands at approximately $2.1 trillion, per CoinMarketCap, maintaining its dominance at 56% of the total crypto market. Ethereum follows with a $470 billion cap, underscoring the sector’s scale. Regulatory developments, including U.S. Securities and Exchange Commission oversight of ETFs, continue to shape investor behavior, with filings from issuers like BlackRock providing transparency into flows.

Key Takeaways

• U.S.-China Tensions Drive Volatility: The upcoming presidential meeting in South Korea has triggered a 2.96% Bitcoin drop, with similar effects on Ethereum and ETFs.
• ETF Outflows Signal Caution: $40.5 million exited Bitcoin ETFs in 24 hours, following $1.23 billion last week, per SoSoValue—highlighting risk aversion.
• Expert Insights on Rallies: Peter Brandt warns of a potential top after an 8.2X gain; monitor for corrections while considering long-term holdings like Strategy’s expansions.

Also Read: Strategy Adds 168 BTC, Extends Treasury to 640,418

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Conclusion

The Bitcoin price dip below $110,000 in 2025, fueled by U.S.-China tensions and Bitcoin ETF outflows, marks a pivotal moment for the cryptocurrency market. As investors digest the implications of the late October presidential meeting and expert analyses like Peter Brandt’s, the sector demonstrates its sensitivity to global events. Published by COINOTAG on October 21, 2025, and last updated the same day, this report draws on data from authoritative sources such as CoinMarketCap and SoSoValue to provide factual insights. Looking ahead, monitoring regulatory updates and economic indicators will be essential; consider strengthening your portfolio strategy to navigate potential recoveries or further adjustments.