Why is Bitcoin falling? Global tension, withdrawals, and a banking crisis explain BTC's price drop

• Bitcoin fell to $102 on October 9
• US-China tensions and ETF withdrawals increase pressure
• Asset tries to stabilize near US$ 106.982 with slight increase

Bitcoin has experienced a period of sharp correction in recent weeks, after reaching all-time highs in early October. The market's leading cryptocurrency fell to nearly $102.000 on Thursday, October 9, marking one of the sharpest declines of the quarter. Currently, the asset is attempting to stabilize around $106.982, up 1,5% in the last 24 hours, after two consecutive weeks of losses.

But why is Bitcoin falling? Experts point out that the decline is the result of a combination of geopolitical uncertainty, institutional capital outflows, and signs of fragility in the U.S. banking system.

The main factor triggering the correction was increased tensions between the US and China, after current US President Donald Trump threatened new tariffs against the Asian country. These statements heightened risk aversion in global markets, triggering liquidations in leveraged positions and pushing BTC from $122.000 to below $117.000 in a matter of days.

Volatility was also heightened by domestic political and economic factors. The U.S. government shutdown, now in its third week, raised concerns about the fiscal impact and economic slowdown. Furthermore, the meeting between Trump and Vladimir Putin, followed by a visit by Volodymyr Zelenskyy, reignited uncertainty surrounding the war between Russia and Ukraine, further putting pressure on risk markets.

Another relevant point is the growing distrust in the US banking system. Regional banks such as Zions Bancorp and Western Alliance reported losses and lawsuits reminiscent of the Silicon Valley Bank crisis in 2023. These fears have triggered capital flight and reduced investor interest in assets considered volatile, such as Bitcoin.

Spot Bitcoin ETFs also contributed to the weakening. After nine days of strong inflows totaling nearly $6 billion, the funds recorded net outflows of over $1,2 billion last week, intensifying selling pressure.

Meanwhile, gold continues its upward trajectory, reaching new highs close to US$4.400 per ounce, demonstrating the market's preference for safe-haven assets amid global uncertainty.

Will Bitcoin fall or rise? Traders point the way for BTC

Analysts are saying Bitcoin may be close to a key support zone, but caution remains about its next moves.

Altcoin Analyst Sherpa commented :

"This strange ladder-like price action in $BTC will pull back a bit; that will be the first test to watch. I really hope it holds on the first try. I'm not necessarily saying it will return to the lows, but in my opinion, it will be a good buying opportunity if/when it arrives. You can easily short it if the lows are broken."

According to him, Bitcoin could find support near $100.000, which would represent a good entry point for those looking for buying opportunities if the price retests that level.

Trader Ted (@TedPillows) analyzed :

$BTC is struggling to regain the support level between $108.000 and $109.000. This will be the first crucial point to regain to bring some confidence. If this happens, Bitcoin could rise towards $112.000 in the coming days. If it fails, the asset could fall back to the $100.000 region.

In Ted's view, recovering the $108.000 support is crucial for Bitcoin to regain upward momentum. Otherwise, a further correction toward $100.000 could occur in the short term.