On October 19, Bitcoin’s price briefly dropped below $110,000, marking a 12% correction from its recent all-time high. Analysts attribute the decline to large-scale whale selling, rising U.S.–China trade tensions, and a surge in demand for put options, according to The Block.
At one point, BTC traded around $109,800 before recovering to $111,220. The pullback followed a historic weekend that saw over $19 billion in crypto liquidations, the largest ever recorded.
Matt Hougan, CIO of Bitwise, described the move as a “structural reset” rather than a market collapse.
Timothy Misir, Head of Research at BRN, noted that large holders have been trimming their positions calmly, without panic. His data shows that whales holding between 10 and 10,000 BTC offloaded around 17,500 BTC, yet remain net buyers for the year, having accumulated over 318,000 BTC so far — a sign of portfolio rotation rather than mass exit.
Derivatives Data Reflects Market Caution
Options market data reveals growing hedging activity. The volume of put options exceeded $1.15 billion, accounting for 28% of all trades, while open interest in call options is concentrated between $115,000 and $130,000 strike levels.
As Bitcoin slipped, other major cryptocurrencies also declined, dragging the total crypto market capitalization down to $3.8 trillion. The Fear & Greed Index dropped to 28, signaling rising investor caution.
More than $528 million in long positions were liquidated across exchanges in the past 24 hours, according to CoinGlass.
Analysts See Structural Strength Despite Correction
Some strategists view the correction as a sign of a healthy market cycle. Matt Mena of 21Shares emphasized Bitcoin’s resilience, highlighting $6 billion in ETF inflows over the past month as a key source of structural demand.
He suggested that the market’s deleveraging sets the stage for a potential recovery toward $150,000 by year-end, assuming institutional demand remains strong.
In the short term, however, the technical setup appears fragile. Mena warned that a clear break below $110,000 could send BTC toward $104,000–$108,000, while a sustained move above $115,000 would be needed to reignite bullish momentum.
Whale Flips from Short to Long
According to Lookonchain, one whale who previously earned over $5.5 million in four days has shifted from shorting to longing the market.
“Whale 0xc2a3… just opened a 5x long position on 68.4 BTC ($7.6M) and placed limit orders to go long on ETH as well,” — Lookonchain (October 16, 2025)
The trader’s change in strategy suggests a renewed optimism for a market rebound after profiting from the recent downturn.
Meanwhile, CryptoQuant analyst Axel Adler Jr. remarked that Bitcoin has “passed its maturity test,” proving its capacity to absorb heavy selling and liquidity shocks without systemic failure.
