Bitcoin Slides Below $110,000 Could Reflect U.S.-China Trade Tensions, Prompting Liquidations and Options Hedging

• Bitcoin falls to $108,027 (-2.97%)

• Market cap down 2.59% to $3.67 trillion; Fear & Greed index at 32

• ~209,371 traders liquidated; $692M liquidated in last 24 hours; options flows show $1.15B into puts

Bitcoin drops below $110,000: BTC trades at $108,027 amid U.S.-China trade tensions; $692M liquidated in 24h. Read COINOTAG’s data-driven market update.

By COINOTAG — Published: 2025-10-16 — Updated: 2025-10-16

This is coming just days after a $19 billion liquidation last Friday that shook the entire market.

What caused Bitcoin to drop below $110,000?

Bitcoin drops below $110,000 after a wave of risk‑off sentiment tied to renewed U.S.–China trade tensions and heavy deleveraging among leveraged traders. BTC is trading at $108,027, down 2.97% in 24 hours, as broad sell‑pressure rippled across major altcoins and prompted sizable liquidations.

Market data from CoinMarketCap shows Ethereum (ETH) sliding 2.50% to $3,901 and XRP down 4% to $2.34. Solana, Cardano and Dogecoin also registered 3–5% losses. The total cryptocurrency market capitalization contracted roughly 2.59% to $3.67 trillion. Sentiment metrics indicate elevated caution: the Fear & Greed index sits at 32, signaling investors are defensive and more likely to reduce exposure.

Crypto Market in Red | Source: CoinMarketCap

How many traders and positions were liquidated during the drop?

According to plain text reporting from CoinGlass, approximately 209,371 traders were liquidated, with roughly $692 million in positions closed over the prior 24 hours. This follows a larger event days earlier when about $19 billion in liquidations wiped out many leveraged positions. Those large, rapid liquidations amplify price moves as forced selling cascades through futures and perpetual markets.

Options market activity also reflects growing downside hedging. Analytics platform GreeksLive (plain text reference) reports that more than $1.15 billion, roughly 28% of options volume, flowed into shallow out‑of‑the‑money put options, with traders focusing on strike ranges between $104,000 and $108,000 for Bitcoin. That concentration of put buying suggests institutional and retail participants are positioning for further near‑term weakness or protecting gains.

Frequently Asked Questions

How low could Bitcoin fall based on current market data?

Price projections are inherently uncertain, but current on‑chain and derivatives data show concentrated put strikes at $104,000–$108,000 and increased liquidation activity. These indicators suggest heightened downside risk in the near term, with key technical support near the $100,000 psychological level.

Why did options traders buy so many puts?

Options buyers typically purchase puts to hedge existing long exposure or to speculate on declines. With geopolitical tensions and prior large liquidations increasing volatility, many traders moved into shallow out‑of‑the‑money puts to limit downside and lock in protection.

Market context and expert perspective

Geopolitical developments — specifically renewed trade tension between the U.S. and China — coincided with a market already vulnerable from recent leverage build‑up. The combination of macro uncertainty and concentrated margin positions created conditions for aggressive deleveraging once selling began.

COINOTAG senior analyst Marco Silva commented: “The market is demonstrating classic deleveraging dynamics — a macro shock has cascaded into forced liquidations and a rush to hedge. Expect volatility to remain elevated until these positions rebalance and liquidity returns.”

Data sources referenced in reporting (plain text): CoinMarketCap, CoinGlass, GreeksLive. All figures are current as of the Published/Updated timestamps above.

Total Liquidation in the last 24 hours | Source: Coinglass

About the on‑chain implications: large, rapid liquidations reduce the number of leveraged long positions and can compress open interest on exchanges. That can produce short‑term price rebounds if sellers are exhausted, but persistent macro pressure and continued put buying may keep the bias negative.

Key Takeaways

• Immediate impact: BTC fell to $108,027 (-2.97%), dragging major altcoins down and shrinking the crypto market cap to $3.67T.
• Liquidity stress: ~209,371 traders liquidated and $692M lost in the last 24 hours; prior weekend saw ~$19B in liquidations.
• Options and sentiment: Significant flows into puts (~$1.15B) and a Fear & Greed index at 32 indicate defensive stance and continued volatility; monitor put strikes around $104K–$108K.

Conclusion

Bitcoin’s drop below $110,000 reflects a convergence of macro risk, concentrated leverage and growing demand for downside protection. COINOTAG’s analysis emphasizes the importance of monitoring liquidation metrics, options flows and sentiment indices as indicators of near‑term risk. Stay tuned to COINOTAG for ongoing data‑driven updates and conservative, evidence‑based market coverage.

Also Read: Ripple Buys GTreasury for $1B to Enter Corporate Finance Sector

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