Bitcoin Drops Below $110,000, Is the Market Turning Bearish?

Original Article Title: "Bitcoin Falls Below $110,000, Whose Wallet Is Losing Again?"

Original Article Author: 1912212.eth, Foresight News

After the 10.11 Black Swan plunge, the market was generally worried about a "double-dip." Just a few days later, another sharp decline came. On October 17, Bitcoin, after a daily four-day drop from its rebound of $116,000, once again plummeted. This afternoon at around 4 o'clock, it briefly fell to around $104,500, approaching the 10/11 crash low of $102,000. ETH was not spared either, falling to $3,706, SOL dropping to around $175, and many altcoins experiencing a general decline.

Coinglass data shows that in the past 24 hours, the total net force liquidation of open leveraged positions across the network was $1.189 billion, with long positions liquidated at $935 million. The largest single liquidation occurred on Hyperliquid - ETH-USD, worth $20.4274 million. Alternative data shows that the current market fear index has dropped to 22, entering a state of extreme fear.

Significant Net Outflows from BTC and ETH Spot ETFs

Since the crash event, U.S. BTC spot ETF data has shown significant net outflows. From October 10 to October 16, only October 14 saw a net inflow of $102.58 million for the day, while the rest experienced net outflows. The outflow on October 1 even exceeded $536 million, hitting a new low since August of this year.

The Ethereum spot ETF situation is equally bleak, with continuous large net outflows since October 9. On October 13, the net outflow exceeded $428 million, reaching a new outflow high since September of this year.

Crash Event Leads to Fragile Market Confidence

DeFiance Capital, which once shone in the previous cycle by betting on multiple DeFi projects, suffered losses in this crash event. On October 14, its founder Arthur posted on social media, stating, "We are fine, the fund has suffered some losses, but it doesn't rank in the top five of our profit and loss fluctuation days. I am just very angry and disappointed. This crash event has set back the entire crypto space significantly, especially for the altcoin market, as most price discovery processes are conducted on offshore CEXs."

He even pessimistically believes that the collapse event represents the end of the crypto era.

The previously hyped trend of Corporate Digital Asset Treasuries (DAT) has now also cooled off. Tom Lee, Chairman of BitMine, Ethereum's first treasury institution, stated that this bubble may have already burst.

Previously, the U.S. Nasdaq-listed company QMMM Holdings announced on September 9, 2025, its intention to establish a $100 million cryptocurrency reserve, causing its stock price to surge 9.6 times within three weeks. The U.S. Securities and Exchange Commission (SEC) alleged at the end of September that the company was manipulating its stock price through social media and ordered a trading halt starting on September 29. The company has remained halted since then. When Caixin visited its Hong Kong headquarters on October 16, they found the office vacated, and when inquiring with employees of nearby companies, they were informed that the company had moved out in September, with no knowledge of its new location.

In response to this, Zhao Changpeng commented, "All Corporate Digital Asset Treasuries (DAT) companies should use third-party crypto custodians and have their accounts audited by investors."

American Small Banks Go Bankrupt, Market Sells First and Asks Questions Later

American regional banks Zions Bancorp and Western Alliance Bancorp disclosed on Thursday that they had incurred losses due to fraud related to a troubled commercial mortgage-backed securities investment fund. Although their losses were relatively small compared to recent credit blow-up events, involving only tens of millions of dollars, the market's reaction was unusually severe.

The German DAX Index fell by 2.13%, the UK's FTSE 100 Index dropped by 1.6%, the Nikkei 225 Index declined by 1.44%, the Australian S&P/ASX 200 Index saw a 0.81% decrease, and U.S. stock index futures all experienced declines.

Panic quickly spread, dragging down the entire banking sector, with the total market value of 74 large U.S. banks plummeting by over $100 billion in a single day.

This "sell first and ask questions later" mentality rapidly spread. JPMorgan analysts Anthony Elian and Michael Pietrini pointed out in a report that they were also questioning "why all these credit 'isolated incidents' seem to be happening within a short period of time." However, the sell-off did not spare large bank stocks, as Citigroup and Bank of America both saw their stock prices drop by over 3%.

The U.S. banking crisis of 2023 also once triggered a significant pullback in the crypto market.

Is the Bear Market Coming?

Placeholder VC Partner Chris Burniske posted stating, "Increasingly feels like last Friday's crash has left the crypto markets stalled in the near term, hard to form strong bid in the wake of such a blow, disappointed at this point in the cycle from most vantage points it seems, which may constrain action as folks wait for healing or the restoration of previous highs ... it's easy to get lost in the chart weeds, but when you look at the monthly BTC & ETH candles, we're still in such a high band (albeit marred), particularly if you consider the profit taking."

MSTR is in decline, gold gives a warning, so too does credit, with equities being the last to react. There's always room to bounce weakly, but I've been proactive (remember, cash is never all in or all out). Watching how BTC performs around $100k, but could get market interested again around $75k or less. This bull run is different from the past, so too will the next bear market be different."

Arete Capital Partner McKenna mentioned that the market is in the process of forming a bottom, a 40-60 day period is needed for it to culminate. All price action within this span is wash trading. "By mid-November, we should expect constructive outcomes and look forward to a positive December and Q1 2026."

glassnode tweeted that Bitcoin is currently at a critical support level, below the 200-day moving average ($107,400), just above the 365-day moving average ($99,900), and facing resistance from the 111-day moving average ($114,700).

If it holds above the 365-day moving average, the trend may stabilize; if breached, it could face deeper retracement risks.