BTC Hits 108K USDT: Volatility & Key Factors

Bitcoin Price Swings Wildly: Hits 108,000 USDT, Then Plummets Late October 2025

In late October 2025, the cryptocurrency market witnessed dramatic developments as Bitcoin (BTC) price surpassed the 108,000 USDT mark, only to quickly experience significant declines. This article will delve into the key factors that shaped the price volatility of this leading digital asset, from statements by the US Federal Reserve (Fed) and US-China trade tensions to Bitcoin ETF flows.

Overview Of Bitcoin Price Volatility In Late October 2025

On October 30, 2025 (UTC), Bitcoin's price briefly touched 108,180 USDT according to Binance Market data. However, this event occurred amid extreme market volatility. Immediately thereafter, BTC saw a 1.90% decline within 24 hours, with some periods experiencing drops as deep as 4.54% or 4.65%, pushing the price below 108,000 USDT. The price recovered above 111,000 USD on the same day, October 30, but then traded around 109,900 USD on the morning of October 31, a 0.6% drop in 24 hours. The trading range on October 30 was wide, from 106,300 USD to 111,600 USD, indicating significant market instability.

Key Factors Influencing Bitcoin Price Volatility

Bitcoin's movements in late October 2025 resulted from a complex interplay of macroeconomic, regulatory, and market sentiment factors.

Downward Price Pressure: Key Causes

"Hawkish" Statements from Fed Chair Jerome Powell: These remarks sowed doubt about the possibility of an interest rate cut in December, creating uncertainty in global financial markets. Consequently, over 1.13 billion USD in crypto positions were liquidated, with Bitcoin long positions accounting for over 400 million USD.

The Fed's policy became a focal point, leading to a massive liquidation event in the market, especially for Bitcoin long positions.

Fed's Interest Rate Cut Decision and Negative Market Reaction: Although the Fed implemented a second interest rate cut of 0.25 points on October 29 – a move typically expected to support risk assets – the cryptocurrency market unexpectedly declined. Bitcoin fell below 109,000 USD, reportedly because investors were awaiting clearer signals from US-China relations rather than reacting positively to the easing policy.

Uncertainty in US-China Trade Relations: Despite a preliminary trade agreement reached on October 29, focusing on rare earths and strategic minerals, initial optimism quickly faded. Investors remained skeptical about the agreement's sustainability and long-term commitment, keeping the market cautious.

Large-scale Position Liquidations (Profit-Taking) from "Whales": A price drop below critical support levels triggered automatic sell orders, particularly from large investors, contributing to further price declines.

Outflows from Bitcoin ETFs: US spot Bitcoin ETFs recorded their first day of outflows after four consecutive days of inflows, with a total of over 470 million USD withdrawn, of which Fidelity's FBTC accounted for over 164 million USD. This served as a cautionary signal about market sentiment.

Technical Indicators: Sellers gained dominance, with Bitcoin breaking the local support level of 107,948 USD, indicating potential further declines to 106,137 USD and possibly the 100,000-105,000 USD range. On October 30, Bitcoin was trapped between its 200-day moving average (109,000 USD) and 100-day moving average (114,000 USD), with rejection from the 100-day line. The overall trend on the daily chart on October 31 leaned bearish after strong rejection at the 126,000 USD zone, forming lower highs, indicating a distribution phase.

Upward Price Pressure (Prior Or Short-term): Positive Signals

Earlier in October, the market also registered positive signals that fueled Bitcoin's growth:

   • "Uptober" Sentiment and Analyst Expectations: Early October saw optimism for a strong bullish October, with some analysts expecting Bitcoin to reach 125,000 USD driven by Fed rate cuts and liquidity injections.

   • Institutional Capital Inflows via Spot ETFs: Bitcoin Spot ETFs became a major, price-insensitive source of demand in early October, recording cumulative net inflows of 4.57 billion USD for the month, with total assets under management reaching a record 154.8 billion USD on October 29. However, this trend reversed on October 30.

   • Regulatory Clarity in the US: Reduced regulatory risks created favorable conditions for large capital allocators.

   • "De-escalation" Signals in US-China Trade: Signs of easing trade tensions supported a market recovery, helping Bitcoin surpass 115,000 USD on October 27-28, and a short-term rally above 110,000 USD was also noted after news of the initial trade agreement on October 29.

Market Sentiment And Short-Term Outlook

The cryptocurrency market was in a highly volatile phase in late October 2025. Investors remained cautious, balancing the Fed's dovish stance with improved geopolitical prospects, yet concerned about the sustainability of the US-China trade deal. Technical analysis indicated a risk of Bitcoin's price dropping to 100,000 USD if current support levels were breached. Some analysts warned of potential mass liquidations if the price fell to 89,854 USD.

October concluded with the risk of falling below 100,000 USD, marking a "red October" instead of the initially anticipated "Uptober."

Key Events Around October 30, 2025

October 29: The Federal Reserve cut interest rates by 0.25 points; Federal Open Market Committee (FOMC) meeting took place; US-China trade agreement (limited scope) announced.

October 30: Bitcoin's price fell to 108,000 USD and then recovered, but later dropped below this mark due to the Fed's "hawkish" statements. Crypto options contracts expiring on October 31 also contributed to market volatility.

Broader Context: Macroeconomics And Adoption

Macroeconomic factors such as the US Federal Reserve's monetary policy (interest rate cuts), inflation, and the global economic situation continue to play a crucial role in shaping the market. Alongside this, increasing institutional adoption, with leading financial institutions like Morgan Stanley and JPMorgan expanding their cryptocurrency asset allocations, indicates a positive long-term trend. However, the Bitcoin Halving event, while not a direct factor influencing price volatility in late October 2025, remains a significant long-term event affecting Bitcoin's supply.

In summary, the final days of October 2025 were a challenging period for Bitcoin, where "Uptober" growth expectations gave way to volatility and downside concerns. Investors need to closely monitor Fed actions, geopolitical developments, and institutional flows to make informed decisions.

Disclaimer: This article is intended solely to provide information and market insights at the time of publication. We make no promises or guarantees regarding performance, returns, or the absolute accuracy of the data. All investment decisions are the sole responsibility of the reader.