Bitcoin Price Drops to $110K Amid U.S.-China Tensions

Bitcoin has slipped to the low $110,000, marking a sharp pullback from its recent highs above $126,000.

This move comes after over $19 billion in leveraged positions were liquidated, forcing more than 1.6 million traders out of the market.

Analysts point to escalating U.S.-China trade tensions, including new tariffs and export controls, as key triggers behind the sell-off.

Despite this short-term drop, Bitcoin continues to attract institutional interest, with hundreds of public companies holding the cryptocurrency as part of their strategic reserves.

This mix of geopolitical risk and corporate adoption makes the current market environment both challenging and promising for investors.

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Key Takeaways

1. Bitcoin slipped to $110,000 after massive liquidations and rising U.S.-China tensions.

2. Institutional adoption remains strong, with over 172 public companies holding BTC totaling 1.02 million coins.

3. Market volatility continues, but corporate and institutional interest signals long-term confidence in Bitcoin.

Why Bitcoin Fell: U.S.-China Tensions and Market Liquidations

The recent Bitcoin sell-off was fueled by a combination of geopolitical and technical factors. On October 10, Bitcoin fell to the low $110,000 after news that the U.S. would impose 100% tariffs on Chinese goods, while China announced export controls starting November.

These developments rattled global markets, causing a rush of leveraged positions to be liquidated.

Liquidation Impact

Over $19 billion in leveraged positions were wiped out across exchanges. This cascade affected more than 1.6 million traders, magnifying the downward pressure on BTC. Such liquidations often create short-term panic and amplify price swings.

Technical Factors

Bitcoin’s recent surge to all-time highs above $126,000 meant traders had taken significant risk at extreme valuations.

When global uncertainty intersected with overleveraged positions, the market experienced a sharp pullback, highlighting Bitcoin’s sensitivity to macroeconomic events.

Investors are watching how BTC reacts to support around $110,000. Holding above this level may allow the market to stabilize before any further upside attempts.

Read Also: Bitcoin Correction Before the Boom? Analysts Eye $150K by Year-End

Corporate Bitcoin Adoption Keeps Growing

Despite short-term price drops, corporate Bitcoin adoption continues to expand. According to Bitwise Asset Management, 172 public companies now hold BTC, a 38.7% increase from the previous quarter. Total holdings reached 1.02 million BTC, representing nearly 4.9% of the circulating supply.

Notable Institutional Holders

• Strategy: 640,031 BTC

• MARA Holdings: 52,850 BTC

• XXI: 43,514 BTC

• Metaplanet: 30,823 BTC

• Bitcoin Standard Treasury Company: 30,021 BTC

Corporate Developments

Q3 2025 saw major institutional moves, including Strive’s acquisition of Semler Scientific in a Bitcoin-focused M&A deal, and Bitcoin Standard Treasury Company’s launch of a $1.5 billion Bitcoin SPAC.

Exchanges like Bullish went public, holding over 24,000 BTC, further signaling institutional confidence in Bitcoin’s long-term potential.

Even during periods of volatility, these holdings demonstrate that companies are increasingly using Bitcoin as a strategic reserve and hedge against macroeconomic risks.

Read Also: Polymarket Crypto Bets: 71% Chance Bitcoin Hits $126K in October 2025

Market Outlook and Predictions

Bitcoin’s recent price drop highlights the volatile nature of the market, yet it also underscores the resilience of long-term demand from institutional players.

Short-Term Risks

• Bearish trend: The low $110,000 could be tested if selling pressure continues.

• Geopolitical impact: Ongoing U.S.-China tensions may continue to create market uncertainty.

• Liquidation risk: Over-leveraged traders could trigger further swings.

Medium-Term Opportunities

• Institutional accumulation: Corporate holdings continue to rise, supporting price stability.

• Strategic adoption: Companies using Bitcoin as a hedge signal confidence in its value proposition.

• Potential recovery: If geopolitical pressures ease, BTC may attempt to reclaim recent highs above $120,000.

Analysts suggest keeping an eye on macroeconomic developments and corporate buying patterns, as these factors may provide clues for Bitcoin’s next major move.

Read Also: Bitcoin Recovery Post-Crash: Low-Price Buying Opportunities

Conclusion

Bitcoin’s drop to $110,000 reflects the market’s sensitivity to geopolitical tensions and liquidation events, but institutional adoption continues to grow.

Companies holding over 1 million BTC show that long-term confidence remains strong, even amid short-term volatility.

For traders and investors, staying informed and using reliable platforms is critical in navigating these swings.

Bitrue offers a secure, user-friendly environment for buying, selling, and storing Bitcoin, helping users manage risk while taking advantage of market opportunities.

With robust security and transparent pricing, Bitrue makes crypto trading easier and safer for both beginners and experienced investors.

FAQ

Why did Bitcoin drop to $110,000?

Bitcoin fell due to a combination of U.S.-China trade tensions and the liquidation of over $19 billion in leveraged positions.

How many companies currently hold Bitcoin?

172 public companies are holding a total of 1.02 million BTC, representing nearly 4.9% of the total supply.

What is the impact of leveraged liquidations?

Liquidations force traders out of positions, increasing selling pressure and causing short-term price drops.

Could Bitcoin recover from $110,000?

Yes, if support holds and geopolitical tensions ease, Bitcoin could stabilize and attempt to reclaim recent highs above $120,000.

Where is the safest place to trade Bitcoin?

Bitrue provides a secure and user-friendly platform for trading Bitcoin, offering robust security, transparent prices, and reliable liquidity.

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.