Bitcoin Slumps Below $104k Amid Market Turmoil and Trade Tensions

New York, NY — Bitcoin, the leading cryptocurrency, has continued its descent, dropping below $104,000 on October 17, 2025. This follows a week of significant losses fueled by renewed U.S.-China trade tensions and massive sell-offs in the crypto market.

Bitcoin, once heralded as a safe-haven asset, fell approximately 5% in the past 24 hours, reaching a low of $103,300 after briefly trading near $112,000 earlier in the week. Ethereum, the second-largest cryptocurrency, also saw a decline, slipping to around $3,600, a drop of nearly 9%.

The recent downturn has seen over $19 billion in leveraged positions liquidated in just 24 hours. According to data from Coinglass, a staggering $917 million in losses were incurred by long traders betting on a market recovery.

Analysts at Bitfinex noted that the market’s volatility has heightened due to a combination of geopolitical developments, particularly U.S. trade policy announcements. They claimed, “Any pressures in traditional equity markets can shift into crypto, tightening liquidity and affecting leveraged positions.”

This turbulence started after former President Donald Trump announced a potential imposition of a 100% tariff on imports from China, igniting fears of escalating economic conflict. As a result, investors reacted with panic, leading to sky-high sell-off volumes and the sharpest decline in market value since the onset of the pandemic.

Institutional investments have also taken a hit, with Bitcoin and Ethereum exchange-traded funds (ETFs) experiencing significant outflows. Estimates show that Bitcoin ETFs alone saw around $536 million in withdrawals on October 16, marking the highest single-day withdrawal since August.

Timothy Misir, head of research at BRN, expressed concern, stating, “If redemptions surpass $1 billion within the next 48 hours, Bitcoin might test support levels near $96,000 before any stabilization occurs.”

As of this writing, the total value of the cryptocurrency market has dropped significantly to approximately $3.58 trillion, with Bitcoin’s dominance at 58.91%. This decline underscores the continuing challenges faced by the digital asset sector amid shifting market sentiment.