Bitcoin falls below $105,000: Geopolitics and shutdown weigh on!

Bitcoin falls below $105,000: Geopolitics and shutdown weigh on!

Bitcoin (BTC) is under pressure today, October 17, 2025, trading around the $105,000 mark after the cryptocurrency lost almost 9% this week. This price correction is due to a combination of geopolitical tensions and the ongoing US government shutdown, which increases risk for various asset classes, including Bitcoin.

At the beginning of the week, Bitcoin was still showing positive trends, but the escalating trade tensions between the USA and China led to a decline to below USD 112,000. US President Trump has threatened to end trade ties with China over soybean purchases, while China has imposed new fees on US ships and imposed export restrictions on rare earths. Additionally, Russia's military activities in Ukraine are increasing investors' risk aversion.

Political and economic uncertainties

The US government shutdown, which has been ongoing since October 1st, has led to a gridlock in Congress and is negatively impacting the release of economic data and the assessment of future interest rates. This situation has also delayed the approval of several altcoin ETF applications, which could further dent market interest in cryptocurrencies.

Another worrying trend is the decline in institutional demand for Bitcoin. There were $864.48 million in outflows from Bitcoin spot ETFs as of Thursday, according to a recent analysis. This indicates declining confidence in the cryptocurrency and reflects the impact of current market conditions.

Market dynamics and technical indicators

Amid these uncertainties, market analysis shows that the recent correction could represent a potential medium to long-term buying opportunity once market conditions stabilize. Bitcoin saw a significant drop in open interest after a major liquidity flush occurred. This suggests that a realignment of market dynamics has occurred.

Bitcoin futures funding rates have trended negatively, suggesting that traders are willing to pay a premium to maintain their short positions. This could be a sign that there is a certain level of uncertainty and pessimism in the market. Additionally, Bitcoin has found resistance at the 50-day EMA at $114,667 and could decline further if it closes below the 200-day EMA at $108,030.

On the positive side, Bitcoin's dominance in the market is currently around 58.9%, which is the highest level this cycle. This indicates strong institutional interest. With ETF reviews suspended by the SEC due to the government issue, institutional money could be diverted into existing Bitcoin and Ethereum products, which could provide further momentum.

The coming weeks will be crucial to see whether the market environment can stabilize and institutional demand returns. The development of Bitcoin therefore remains exciting and closely linked to global economic and political events.

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