The crypto market woke up with extreme volatility this October 17, 2025. Bitcoin (BTC) plummeted sharply, breaking a vital psychological level for traders. The key event is that Bitcoin loses 106k support decisively. This crash triggered massive liquidations of bullish positions worth $800 million, according to data from the analytics firm Kaiko. The blow did not discriminate. It affected both retail traders using leverage and complex institutional strategies linked to ETFs.
The “Cascade Effect”: $800 Million Wiped Out by ETF Outflows
The fall was a perfect storm of factors. Rumors about new trade tariffs generated strong macroeconomic nervousness in global markets. Simultaneously, significant capital outflows from spot Bitcoin Exchange-Traded Funds (ETFs) were recorded. This combination of selling pressure was too much. The key support collapsed.
For weeks, $106,000 had served as a technical and psychological benchmark. Its loss immediately activated a chain of algorithmic sell orders. “Long” (bullish) positions with high leverage could not withstand the descent. Risk engines on centralized platforms executed forced closures to cover losses. Meanwhile, in decentralized finance (DeFi), smart contracts automated the process, paying liquidators.
This event underscores the market’s vulnerability to concentrated capital outflows. It especially highlights the weight that ETF flows now carry. The $106,000 level was more than just a number; it functioned as a psychological anchor for bullish confidence. When it broke, margin calls cascaded. This multiplied the selling pressure in an environment that quickly lost intraday liquidity. The episode is reminiscent of liquidations seen in previous cycles. However, it now demonstrates the new risk dynamics in the digital economy. The ETF economy can feed back and accelerate downturns in the spot market.
Is the $100,000 Level the Next Abyss for Bitcoin?
The main lesson from this day is the extreme risk of leverage. Traders with little collateral margin were the first to fall. This event also confirms a dangerous feedback loop in the market. When institutions withdraw funds from ETFs, the spot price falls. This initial drop triggers more liquidations from leveraged retail traders. This second wave of selling amplifies the downward movement. Analysts warn that the technical situation is delicate. If Bitcoin loses 106k support on a sustained basis, the door to a larger correction opens. The next clear bearish target is set at the $100,000 psychological barrier.
Volatility remains extremely high following the $800 million liquidation. Investors are closely watching two key factors for the coming week. First, the direction of capital flows in ETFs; they are looking to see if the outflows stop. Second, the price’s ability to reclaim the lost $106,000 level. The next few sessions will define whether the market absorbs the blow and stabilizes the price. Otherwise, the pullback could extend, seeking new lows before finding a firm floor for the quarter.
