Bitcoin Plunges Below $106K: Extreme Fear Grips Crypto Markets
Digital gold shows its cracks as Bitcoin tumbles through critical support levels.
The Fear Factor
Market sentiment hits rock bottom - the crypto fear gauge screams extreme panic as Bitcoin's dramatic slide continues. That psychological $106,000 barrier just evaporated like morning mist.
Technical Breakdown
Support levels crumble faster than a centralized bank's credibility during a liquidity crisis. The charts don't lie - this is proper capitulation territory.
Market Reaction
Traders scramble while institutional money plays the waiting game - because nothing says 'mature asset class' like 20% daily swings that would give traditional finance executives heart palpitations.
Welcome to crypto winter's encore performance - where the only thing dropping faster than prices are the jaws of over-leveraged speculators.
After weeks of sideways trading, Bitcoin price today fell below $106,000, creating worry in crypto markets worldwide. This drop is close to last Friday’s fall, when BTC went down to $104K because of Trump’s tariff news. The sudden drop also pushed the Crypto Fear & Greed Index to 22, showing extreme fear.
So, what caused today’s drop?
Trump Warns China Of 500% Tariff
One of the biggest reasons for Bitcoin’s recent price drop was Donald Trump’s speech accusing China of “economic sabotage.” He blamed its trade and oil deals with Russia for hurting global markets and announced 100% tariffs on all Chinese imports starting November 1, 2025.
Trump also warned tariffs could rise to 500% if China keeps supporting Russia’s energy sector, a MOVE backed by over 85 U.S. senators according to Treasury Secretary Scott Bessent.
ETF Outflows Add More Pressure
Adding to the pressure, Bitcoin’s spot ETFs saw one of their largest daily outflows ever on October 16, totaling $531 million. For the first time, all major ETF issuers including BlackRock, Grayscale, ARK Invest, and Fidelity, recorded outflows on the same day.
Analysts suggest institutions are locking in profits and reducing exposure amid rising geopolitical uncertainty.
Liquidations Trigger Sharp Selloffs
The price drop was further amplified by the massive liquidations. Data from CoinGlass showed that $961 million worth of crypto positions were liquidated in just 24 hours, hitting over 260,000 traders worldwide.
Most of these were long positions, totaling around $749 million, accelerating Bitcoin’s fall below the key $106K level.
Crypto Slips To Extreme Fear
On top of it all, the Crypto Fear & Greed Index’s fall from 56 to 22 highlights extreme fear in the market.
Meanwhile, the so-called “Trump Insider Whale” reportedly opened a $127 million Bitcoin short before Trump’s speech, heightening speculation of insider moves
Right now, fear is taking over the crypto market. Traders are watching last week’s low of $104,396. If bitcoin falls below this, it could drop further to $100,000.
