After starting the week above the critical threshold of $115,000, Bitcoin (BTC) and the wider cryptocurrency market initially exhibited signs of recovery. However, BTC has since resumed its downward trajectory, facing a decline of 4% within the last 24 hours. This downward movement has significantly impacted altcoins, particularly Ethereum (ETH) and XRP, both of which have experienced notable losses.
As Bitcoin has plunged, Ethereum has dropped by 5%, once again slipping below the crucial $4,000 support level. XRP, on the other hand, has faced even steeper losses, plummeting by 7% during the same period, now trading closer to $2.40. These declines illustrate the heightened volatility permeating the altcoin market in the current climate.
Analysis from Bloomberg attributes this recent downturn in Bitcoin and the broader crypto market to rising geopolitical tensions. Specifically, the imposition of restrictions by China on American units of Hanwha Ocean Co., one of South Korea’s largest shipbuilders, has been cited as a retaliatory measure against U.S. sanctions affecting the Chinese shipping sector. This comes on the heels of a brutal selloff that began on October 10, leading to the liquidation of around $19 billion in leveraged positions. This selloff, which pushed Bitcoin’s price toward $102,000 last Friday, was spurred by U.S. President Donald Trump’s threats of increased tariffs on China in response to new export controls.
Market analysts are currently scrutinizing Bitcoin’s performance. Should it fall below the $110,000 threshold, there may be a subsequent test of the liquidity band between $104,000 and $108,000, according to Timothy Misir, head of research at BRN, a digital-assets analytics platform. He noted that the market seems to have entered a consolidation phase characterized by renewed caution, selective risk-taking, and a more measured approach to rebuilding confidence across both spot and derivatives markets.
Adding to the discourse, market expert Doctor Profit has outlined three potential scenarios for Bitcoin’s trajectory over the short, mid, and long term on the social media platform X (formerly Twitter). In the short term, focusing on the current month, the outlook is neutral. While a slightly bullish sentiment was observed recently, it has reverted to neutrality as fresh data emerges, indicating a need for more information before reaching a conclusive decision. For the mid-term perspective, stretching from one to three months, the sentiment appears bearish. The expert suggests that the market is entering the early stages of a bear phase, although brief instances of recovery, often referred to as “dead cat bounces,” may occur, overall pointing to a downward trend.
Looking further ahead, the long-term analysis—encompassing a period of three to twelve months—remains pessimistic for Bitcoin and the cryptocurrency space as a whole. The macroeconomic environment indicates the possibility of an impending global economic upheaval, which many analysts believe is closer than it may seem. As it stands, Bitcoin is trading just above its key short-term support at $110,300.
