Bitcoin Price Analysis: BTC Back In The Red As Trade Tensions Persist

Bitcoin (BTC) slipped below $110,000 during the ongoing session, dropping to a low of $109,945 as US-China trade tensions persisted. The retreat cut short a market recovery that saw the flagship cryptocurrency briefly cross $116,000 on Monday. 

The flagship cryptocurrency is down nearly 3% during the ongoing session, trading around $112,030. 

Bitcoin, Ethereum ETFs Register Heavy Outflows 

US-listed spot Bitcoin and Ethereum ETFs registered a combined $755 million in outflows on October 13 as trade tensions between the US and China escalated. According to data from SoSoValue, US Bitcoin ETFs recorded $326.5 million in net outflows on Monday, with Grayscale’s GBTC accounting for the bulk of redemptions. GBTC saw $145.3 million in outflows, followed by Bitwise’s BITB with $115.6 million, and Fidelity’s FBTC with $93.2 million. However, BlackRock’s IBIT registered $60 million in inflows. 

Meanwhile, spot Ethereum ETFs registered $428.5 million in net outflows. BlackRock’s ETHA led the redemptions with $310 million. No Ethereum ETFs registered any inflows.

Hyperliquid Trader Doubles Down On Bitcoin (BTC) Short 

The Hyperliquid whale, who netted $192 million after shorting the market, has doubled down on their new short position, loading up nearly half a billion over the past two days. According to data from Hypurrscan, the whale’s short position is currently worth $496 million at 10x leverage, and a Bitcoin liquidation price of $124,270. The whale doubled their bet over the past 24 hours, initially opening the position with $163 million. The investor first appeared on the crypto community’s radar two months ago, holding a staggering $11 billion in BTC. The trader opened up $900 million in short positions on BTC and ETH last week. 

The whale gained even more attention after opening a short position minutes before US President Donald Trump announced 100% tariffs on Chinese goods, leading to a crash in the crypto market. The identity behind the whale is yet to be confirmed. However, blockchain investigators hinted at a potential connection with Garrett Jin, former CEO of BitForex, a defunct cryptocurrency exchange. On-chain investigator Eye alleged the whale was Jin, leading to Binance CEO reposting the thread. However, ZachXBT suggested it was likely one of Jin’s friends. Jin essentially confirmed the connection when he replied to Zhao, stating, 

“@cz_binance, thanks for sharing my personal and private information. To clarify, I have no connection with the Trump family or@DonaldJTrumpJr — this isn’t insider trading.”

Only minutes later, Jin made another post, stating, 

“The fund isn’t mine — it’s my clients’. We run nodes and provide in-house insights for them.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) has registered a sharp drop during the ongoing session, falling to a low of $109,945 before reclaiming $110,000 and moving to its current level of $111,288. The flagship cryptocurrency fell 1.96% on Saturday, settling at $110,768. However, it made a strong recovery on Sunday, rising nearly 3% to reclaim $115,000 and settle at $115,067. The price faced volatility and selling pressure on Monday but ultimately registered a marginal increase, settling at $115,274. BTC is down nearly 4% during the ongoing session. 

The decline cut short BTC’s recovery, which had seen it reclaim $115,000. Markets were rattled as the latest trade war flashpoint showed few signs of easing. Beijing hit back at Washington, stating it was prepared to “fight to the end” in a trade war. China also accused the US of discriminatory trade prices. The latest escalation could undermine an earlier framework between the US and China. China also justified its export controls on rare earth minerals, and gave little indication of caving in to US pressure. While Beijing noted that working-level talks were ongoing, it warned against imposing more tariffs. 

An October 14 analysis by CryptoQuant contributor Chairman Lee revealed that the BTC on centralized exchanges has fallen to around 2.4 million BTC, the lowest level since 2015. When fewer coins are available on exchanges, selling pressure tends to ease, often leading to major price rallies, as seen in 2020 and 2021. According to Lee’s analysis, while prices may appear weak in the short term, the underlying bullish structure is intact. If long-term holders, institutional investors, and ETFs transfer their assets into cold storage, the supply could get even more restricted. 

BTC traded in bullish territory last week, and began the previous week with a 1.41% increase to $122,318. The price registered a marginal rise on Saturday before reaching an intraday high of $125,750 on Sunday. BTC ultimately ended the weekend at $123,520, up 0.87%. Buyers retained control on Monday as the price rose 0.97% and settled at $124,720, but not before reaching an intraday high of $126.296. BTC lost momentum on Tuesday, falling almost 3% to $121,393. The price recovered on Wednesday, rising nearly 2% and settling at $123,343.

Source: TradingView

Selling pressure returned on Thursday as BTC fell 1.32% to a low of $119,713 before settling at $121,714. BTC and the crypto market crashed on Friday after President Trump announced 100% tariffs on Chinese goods and new export controls for software. The announcement was in retaliation for China's imposing restrictions on rare earth mineral exports. As a result, BTC plunged to $102,000 on Binance before recovering and settling at $112,980. Selling pressure persisted on Saturday as the price fell almost 2% to $110,768. Despite the overwhelming selling pressure, markets recovered on Sunday. As a result, BTC rose nearly 4% to reclaim $115,000 and settle at $115,067. The price faced selling pressure and volatility on Monday, ultimately registering a marginal increase and settling at $115,274. Selling pressure has intensified during the ongoing session, with BTC down nearly 4%, trading around $111,700.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.