Crypto markets face turbulence as U.S. tariffs on China trigger global de-risking and $536 million exits Bitcoin ETFs.
Bitcoin extended its sharp retreat on Friday, falling 5.07% in the past 24 hours to $105,200, its lowest level in more than two months. The drop follows a wave of record outflows from U.S. spot Bitcoin exchange-traded funds (ETFs) and intensifying concerns over a renewed U.S.-China trade war, both of which have sent investors rushing out of risk assets.
The largest Bitcoin ETF outflows since August
According to SoSoValue data, U.S. spot Bitcoin ETFs saw net outflows of $536.4 million on Thursday, marking the biggest single-day withdrawal since Aug. 1.
Eight of the 12 listed funds recorded redemptions, led by Ark & 21Shares’ ARKB, which bled $275.15 million. Fidelity’s FBTC followed with $132 million in exits, while products managed by BlackRock, Grayscale, Bitwise, VanEck, and Valkyrie also posted negative flows.
Ethereum ETFs mirrored the sentiment, logging $56.9 million in outflows, reversing gains from earlier in the week.
“The $536 million in net ETF redemptions signal a surge in investor risk aversion,” said Nick Ruck, director at LVRG Research. “This caution reflects macro shocks, rising trade tensions, sticky inflation, and a liquidity squeeze, all hitting the broader risk landscape at once.”
Trump’s tariff escalation rattles global markets
Markets remain uneasy after President Donald Trump formally confirmed that the U.S. is now in a “trade war” with China, imposing 100% tariffs on Chinese imports.
The move triggered ripple effects across global equities and commodities, while crypto markets erased over $20 billion in leveraged positions in 24 hours earlier this week.
“Tariffs act like a stealth tax. They lift input costs and inflation expectations, keeping central banks hawkish for longer,” said James Butterfill, head of research at CoinShares. “In that environment, liquidity dries up, and Bitcoin, still trading as a high‑beta macro asset, suffers first.”
Technical cracks deepen as the traders' eyes $98,000
On the technical front, analysts warn that losing the $108,000 support leaves Bitcoin vulnerable to a further slide towards $101,000–$102,000, or even $98,000 if selling accelerates.
“$BTC has lost the $108,000 support level. Now there's little to no support until $101,000-$102,000. If Bitcoin manages to reclaim the $110,000 level from here, we could see a bounce back. Otherwise, expect more pain before relief. ” noted Ted Pillow.
Others, however, viewed the ongoing pullback as a potential setup for a rebound.
“The market wants to stabilize,” said Justin d'Anethan, Head of Research at Arctic Digital. “But uncertainty around tariffs and tightening monetary policy means the base is still shaky.”
Trade tensions reshape crypto narrative
Analysts at Bitunix said Trump’s confirmation of the trade conflict has “reshaped global risk appetite” and could push investors toward defensive assets like gold and cash equivalents in the short run.
However, they emphasized that Bitcoin’s long-term narrative could strengthen if the trade conflict expands into financial systems or dollar settlement restrictions.
“The erosion of confidence in U.S. monetary dominance could revive Bitcoin’s appeal as an alternative reserve asset,” Bitunix analysts said.
Gold shines while Bitcoin falters
Gold prices hit fresh highs overnight, reinforcing its role as the preferred safe haven. Longtime Bitcoin critic Peter Schiff quipped that gold could reach $1 million before Bitcoin, calling the current cycle a “de‑bitcoinization trade.”
Still, some traders see opportunity ahead.
Gold going absolutely crazy, people standing in line at the Bullion stores, and Peter Schiff is deepthroating himself.
— Jelle (@CryptoJelleNL) October 17, 2025
Time for a new rotation to digital gold?
Either way, makes sense to see profits flow out of Gold soon with the way the market behaves.$BTC pic.twitter.com/XCQ6PYVxVt
Outlook: short‑term pain, long‑term recalibration
For now, with BTC hovering near $105,000, traders are focused on whether institutional outflows stabilize in the coming sessions. Many expect another wave of volatility if macro signals remain uncertain or if trade rhetoric escalates further.
Despite the sell‑off, analysts say structural factors, slower inflation, central‑bank pivot expectations, and Bitcoin’s growing regulatory legitimacy, could lay the groundwork for recovery later this quarter.
Until clearer signs of geopolitical or monetary easing emerge, however, Bitcoin appears locked in correction mode, caught between ETF redemptions, macro strain, and fragile market sentiment.
Roman Zaika
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