Bitcoin Faces $1.2bn Liquidation Event as Price Dips to $103,000

Bitcoin experienced one of its most dramatic sell-offs this year on Thursday, October 17, 2025, with the cryptocurrency falling to $103,000 and triggering liquidations worth $1.2 billion across crypto exchanges.

The sharp decline marks the largest daily redemption since August and signals a significant shift in market sentiment.

What Triggered the Bitcoin Crash?

The sudden price drop caught many traders off guard, particularly those who had built up leveraged positions expecting a continued rally. According to market data, nearly 79% of liquidated positions were long trades, affecting over 307,000 trading accounts.

The largest single liquidation was a $20.4 million ETH-USD position on Hyperliquid, highlighting how derivatives markets amplified the downward pressure.

Bitcoin accounted for $344 million of total losses, followed by Ethereum at $201 million and Solana at $97 million.

The sell-off created what traders call a “liquidation loop”—when forced closures trigger more selling, which then forces more positions to close in a cascading effect.

Several factors contributed to the market turbulence. Renewed tensions between the U.S. and China dampened risk appetite across global markets.

Additionally, structural issues with Binance’s data feeds and a stronger Japanese yen added to market uncertainty. Citi analysts noted that bitcoin has shown increased sensitivity to equity market movements, making it more vulnerable to broader financial market shifts.

ETF Outflows Signal Changing Sentiment

The bearish momentum extended to Bitcoin ETFs, which saw $536.4 million in net outflows on Thursday.

BlackRock’s iShares Bitcoin Trust lost $29 million, while Fidelity’s FBTC experienced $132 million in redemptions.

Even Grayscale’s converted GBTC product shed $67 million. This reversal is particularly notable given the strong ETF inflows earlier in 2025.

Despite the current volatility, some analysts remain optimistic about Bitcoin’s long-term prospects. Citi maintains its year-end target of $133,000 for Bitcoin, citing continued institutional interest through ETFs.

However, traders are now watching key support levels closely, as Bitcoin has given back most of its early-week gains and risks testing the psychologically important $100,000 mark.