Bitcoin’s price saw significant movement this week amid global economic and political tensions. After reaching a new high of $126,198 in the week, the cryptocurrency experienced a sharp drop to around $105,000 on Friday.
The sudden plunge was triggered largely by U.S. President Donald Trump’s announcement of a 100% tariff on China, escalating trade war fears. The dip liquidated over $3.3 billion in leveraged positions in Bitcoin alone.
Despite the steep fall, Bitcoin quickly rebounded above $114,000 by late Friday, showing resilience in the market. As of Saturday morning, Bitcoin is trading near $112,230. This price level is slightly lower than the recent weekly peak but shows some recovery from the volatility of Friday.
October is historically a strong month for Bitcoin. Economist Timothy Peterson noted that drops of over 5% in October are rare and often followed by quick rebounds. For example, in previous years like 2017, 2018, and 2019, Bitcoin’s price rebounded by as much as 21% within a week after declines. This trend has investors hopeful for further gains this month.
The recent price swings reflect a broader market uncertainty. Many institutional investors are cautious, holding their positions but hesitant to expand exposure significantly. Market analysts suggest this period is one of consolidation, where investors await clearer signals from central banks and regulatory bodies.
The upcoming U.S. Federal Reserve meeting at the end of October is seen as a key event that could trigger major averages, providing a foundation for potential upside moves. Short-term resistance is noted near $125,000, where selling pressure may emerge.
Bitcoin’s total market capitalization remains robust, around $4.23 trillion in the broader cryptocurrency sector, with trading volumes improving compared to recent days. However, 75 of the top 100 cryptocurrencies have declined over the last 24 hours, highlighting mixed sentiment in the crypto market.
Other cryptocurrencies like Ethereum have also seen slight price dips, with Ethereum trading around $4,300. Overall, the crypto market is in a cautious phase, awaiting fresh catalysts.
Analysts believe that if historical patterns repeat and geopolitical concerns ease, Bitcoin will see a rally pushing prices back above the recent high of $126,000 and potentially toward $130,000 or more by the end of October.
This volatile phase comes as Bitcoin remains a key asset for many investors seeking protection against inflation and currency debasement amid global economic uncertainties.
Market watchers advise investors to be prepared for continued swings while keeping an eye on significant economic events that will shape the crypto landscape in the coming weeks.
Bitcoin’s price action this October is a reminder of its volatile nature but also its potential for swift recovery after large dips. Investors are advised to stay informed and cautious as the year progresses.
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