Bitcoin Falls Below $106K After Early October Record High
Bitcoin falls to $103,745 after hitting $126,000 on Oct. 6; Ethereum drops 6% and Binance Coin falls 9.5% in the past 24 hours.
Bitcoin, the world’s largest cryptocurrency, fell below $106,000 early Friday, marking its lowest level since June, after reaching an all-time high of $126,000 just weeks ago. According to CoinDesk data, Bitcoin dropped to $103,745.88 before partially recovering to $105,950 by 9:35 a.m.
The rapid decline comes amid heightened market volatility following geopolitical and economic developments. Last Friday, former President Donald Trump proposed a 100% tariff on certain Chinese imports, which sent global markets reeling. According to CoinGlass data cited by CNN, this triggered $19 billion in liquidated positions across cryptocurrency exchanges, creating sharp downward pressure on Bitcoin.
Trump later characterized the proposed tariffs as likely unsustainable during an interview on Fox Business. “It's probably not. You know, it could stand. But they forced me to do that,” he said. Market participants reacted strongly to the uncertainty, prompting sell-offs in digital assets.
Financial analysts warn that the latest Bitcoin decline could indicate a broader market correction rather than a temporary dip. Alex Kuptsikevich, chief market analyst at FxPro, told Barron’s, “This is a massive sell-off in search of a new bottom. We are not seeing a small correction in a thin market — this is a significant adjustment as traders reassess valuations after rapid gains.”
Ethereum, the second-largest cryptocurrency, also fell by about 6%, while Binance Coin, the fourth-largest, dropped nearly 9.5% over 24 hours. Collectively, the cryptocurrency market has lost more than $600 billion in value over the past week, according to CoinGecko data cited by Bloomberg.
Investors are weighing several factors that may influence short-term price trends. These include increasing interest rates, regulatory scrutiny from U.S. and global authorities, and ongoing uncertainty in U.S.-China trade relations. Analysts also note that Bitcoin’s record highs in early October were partially fueled by speculative trading and institutional investment, which can magnify volatility during market corrections.
Historically, Bitcoin has experienced similar swings after major all-time highs. In late 2021, the cryptocurrency surged above $69,000 before falling to around $42,000 in the following months, highlighting the market’s sensitivity to external events and investor sentiment.
Despite the recent losses, some analysts remain cautiously optimistic about Bitcoin’s long-term potential. The growing adoption of blockchain technology, increasing use of cryptocurrencies for payments and investments, and expansion of institutional involvement continue to support market fundamentals. However, traders are advised to approach positions carefully, as the market remains highly reactive to macroeconomic and geopolitical developments.
