What is the cause of this correction

[Oshosondy]

Bitcoin was at $122500 7 hours ago.

Also this news came out 7 hours ago: https://cointelegraph.com/news/11b-bitcoin-whale-shorts-btc-600m-eth-300m

What I want you to read about the news:

A large cryptocurrency investor who surfaced two months ago with about $11 billion worth of Bitcoin has opened almost $900 million in short positions against Bitcoin and Ether, signaling expectations of a market correction despite widespread optimism for October.

Is this what caused the crash?

Although I also read about this: Bitcoin Price Sinks to $118,000 Amid U.S.-China Trade Tensions

[coolcoinz]

This:

Stock indexes tumbled Friday after President Donald Trump threatened "massive" tariffs on China, reversing early gains that saw the Nasdaq hit a fresh record high.

https://www.investopedia.com/dow-jones-today-10102025-11827857

The bitcoin crash started exactly when US indexes fell. Unfortunately with so many people on Wall Street doing automated trades on multiple stocks, it's bound to happen. Someone dumps seeing Trump threaten China and the bots do the rest, increasing the correction. Then there's leverage. Indexes and bitcoin were doing good for days and the longer the pump the more people try their luck on leverage and then they get liquidated by events like this one.

I wouldn't worry though. This is a healthy correction after a new high and it was started by traditional markets, so there's nothing wrong with bitcoin. IMO we will continue to go up from here unless there's some major event like US cutting trades with China, then we might see a black swan event.

[Wiwo]

Alot is at stake and most definitely it took more than one reason to force such level of price declined in the last 7 hour's, although based on my personal speculation and analysis of market cycles, i expect a dip correction in the price of Bitcoin and ethereum also, but not as drastic and fast the way it did few hours ago, this signals big whales move.

We expect the market to hold a stong resistance $116, for some reason but if it dive below that price, i am afraid that we may head deeper towards $110k.

[Mrbluntzy]

I wouldn't worry though. This is a healthy correction after a new high and it was started by traditional markets, so there's nothing wrong with bitcoin. IMO we will continue to go up from here unless there's some major event like US cutting trades with China, then we might see a black swan event.

I guess it was the two incidents that lead to the correction, meaning if it had not occurred the price of Bitcoin would have still been surging,  so could it still be a healthy correction? being that it was triggered by the investor that put $900 million worth of Bitcoin for sport trade, and also the threatening of massive tariff on china by Trump? I don't really understand why this kind of incidents usually occurs once Bitcoin price starts to surge. I just sometimes picture the incidents like it's deliberately done to make the price plunge and if it's deliberate, then more incidents could unfold to make the price not surge again.

[Dunamisx]

I can see that Bitcoin went as low as $115,900 and as I type it is at $116,900 and we can't say if truly that this news was the cause to the fall seen today, but as always experienced, whenever there's a fall in this manner, the market rises back, but it may only not get to the same rate it fell from, let's see how it goes for the month, even though the amount of money involved is much enough to have caused this sudden shock reaction.

[Stalker22]

Okay, so if we are calling this a crash, then the whole market is crashing, right?  Dropping from $122k to where we are now? Thats nothing! Not a crash at all.  Just a normal day for crypto, especially after it just hit a record high a few days ago.  The real reasons?  Its the bigger macroeconomic picture, the whole market is reacting to whats going on out there in international politics.

[indah rezqi]

Okay, so if we are calling this a crash, then the whole market is crashing, right?  Dropping from $122k to where we are now? Thats nothing! Not a crash at all.  Just a normal day for crypto, especially after it just hit a record high a few days ago.  The real reasons?  Its the bigger macroeconomic picture, the whole market is reacting to whats going on out there in international politics.

This is another major drop ever and I'm sure countless investors have lost money.
Holders are holding onto their Bitcoin, likely just watching their asset values ​​plummet, while traders appear to be losing huge amounts. I can't imagine how many traders have lost their money in an instant, especially in futures trading. For me this is a big crash, regardless of how others view it.

[fillippone]

Speculation ahead of a CME gap before an US long weekend. THe perfect timing on thin volumes to make 5 billion worth of liquidations trought the market.
Speculation at its best.

[_BlackStar]

Speculation ahead of a CME gap before an US long weekend. THe perfect timing on thin volumes to make 5 billion worth of liquidations trought the market.
Speculation at its best.

Seriously - everyone lost almost $20K on 1 btc today, but I think their mood is starting to improve as the price has returned above $113K. There were so many notifications from price monitoring apps that I received some time ago - all because of this big correction, unfortunately I didn't place a single buy order in the market. So - just in time for the weekend, apparently there was a big sale that I missed.

[passwordnow]

I guess it's all about Trump again.

Speculation ahead of a CME gap before an US long weekend. THe perfect timing on thin volumes to make 5 billion worth of liquidations trought the market.
Speculation at its best.

Oh, so this is another speculation.
To be honest, I think that this correction is nothing compared when we've reached $100k+ and then Bitcoin had dropped to $76kish.

So - just in time for the weekend, apparently there was a big sale that I missed.

They always do this, and expect that the recovery is about to happen by Monday when the other markets are open again.

[kawetsriyanto]

Stock indexes tumbled Friday after President Donald Trump threatened "massive" tariffs on China, reversing early gains that saw the Nasdaq hit a fresh record high.

https://www.investopedia.com/dow-jones-today-10102025-11827857
The bitcoin crash started exactly when US indexes fell. Unfortunately with so many people on Wall Street doing automated trades on multiple stocks, it's bound to happen. Someone dumps seeing Trump threaten China and the bots do the rest, increasing the correction. Then there's leverage. Indexes and bitcoin were doing good for days and the longer the pump the more people try their luck on leverage and then they get liquidated by events like this one.

I doubt it is only about the high tariff on China. There should be another reason that the market changes significantly in a short time. Well, it is quite unfortunate if there are big holders who sold their crypto assets because of the news only. I honestly don't really know the cause, but it is probably caused by the whales' action on the market.

I wouldn't worry though. This is a healthy correction after a new high and it was started by traditional markets, so there's nothing wrong with bitcoin.

Not sure that we can say it is a healthy correction since the gap is quite large. If you check Bitcoin price in Binance today, it dropped from $122k to $102k. It is like a serious free fall!! TBH, I'm a bit worried with the current market condition.

IMO we will continue to go up from here unless there's some major event like US cutting trades with China, then we might see a black swan event.

Well, every holder must expect the same. We all expect that this bullish trend isn't over already. Most of us probably still keep holding our assets, especially altcoins.

[BitMaxz]

The sudden price drop started at the NY session opening. I am right on my speculation; the bias is bearish because it's already touched the upper channel of the trend connected to 2021. Without the news or fundamental analysis, there's a strong resistance at around $126k. The cut rates news recently doesn't help crypto to pump because there's not enough volume, and most of the selling volume since the beginning of this week is a combination of small and big investors.
I see the price of BTC is struggling to pump even though the news is good about cut rates. However, selling pressure is strong; that's why my bias since Monday is bearish.

I suggest try to check for a wider view; you should notice that if you draw the previous price action, it's still inside the broadening pattern and connected to the long-term trend from 2021.
It's not only fundamentally influenced by the news, but also technical analysis would tell you that this week should be bearish.
I wasn't expecting this fast drop and reach of $101k. This is how volatile the market is; it can drop fast in just a few hours.

Here just added the image I draw.

[BALIK]

They always do this, and expect that the recovery is about to happen by Monday when the other markets are open again.

The cause is believed to be the re-escalation of the US-China trade war when Trump announced a 100% tax on Chinese goods. If the situation does not improve and becomes more tense, there will be no recovery at the beginning of the week as this is not a normal correction. Things could get worse if the stock market opens in the red at the start of the week.

This is one of the biggest corrections since the 2020 covid pandemic, even more severe than when the trade war was first announced in April.

This is blatant manipulation and speculation, and again nothing is impossible with crypto, it is beyond our imagination. It's unbelievable that an asset with a market capitalization of a trillion dollars can drop from $122k to $104k in the blink of an eye.

[passwordnow]

They always do this, and expect that the recovery is about to happen by Monday when the other markets are open again.

The cause is believed to be the re-escalation of the US-China trade war when Trump announced a 100% tax on Chinese goods. If the situation does not improve and becomes more tense, there will be no recovery at the beginning of the week as this is not a normal correction. Things could get worse if the stock market opens in the red at the start of the week.

This is one of the biggest corrections since the 2020 covid pandemic, even more severe than when the trade war was first announced in April.

This is blatant manipulation and speculation, and again nothing is impossible with crypto, it is beyond our imagination. It's unbelievable that an asset with a market capitalization of a trillion dollars can drop from $122k to $104k in the blink of an eye.

It's one of the biggest corrections that we've seen, as I've said there was one a few months ago when it had topped to $100k+ and then went low to $76k. But you're right that if there will be no recovery to be found by next week, then expect more dips to come. I agree that this is manipulation of what the whales are doing but we can't do anything about it because they're the ones controlling the market. But don't be surprise with this kind of drop because Bitcoin has always been volatile and this is the kind of expected turn that it does from time to time.

[EL MOHA]

I doubt it is only about the high tariff on China. There should be another reason that the market changes significantly in a short time. Well, it is quite unfortunate if there are big holders who sold their crypto assets because of the news only. I honestly don't really know the cause, but it is probably caused by the whales' action on the market.

It is the cause in my opinion, this just to show us how volatile the market is, before in February when the tariff war started it was announced less than 50% increase tariff on all Chinese imports and we saw how it reacted to the news with the dump then been the cause of the biggest liquidation in the entire crypto market now with that same tariff crisis announced for a complete 100% we all know this will get worse than before, over 8 billion liquidated from the market which is 4x of what we are seeing in the history plus Trumps refusal to actually even have a meeting with Chinese leaders is a very serious problem to cause this dump, for bitcoin holders this is simply a time to hold and not panic.

Once there is a Little positive news in the market bitcoin will be back above $120k again but as for the other Altcoins honestly that’s it for most of them, 90% dump is just so scary at this point in time and I don’t think we eil be seeing them raise again. For now hand cross, those on stables can simply mass accumulate at this period in time

[bangjoe]

Some people say that this is real market manipulation, there is a possibility of forced liquidation for people who are long on bitcoin below $120k before it really flies much higher, the price dropped tonight to $103k and this is out of anyone's control, it is very unlikely because of Trump's tariffs, this has been happening for a long time, but it didn't have such a big influence on the market before, but this time at a time when the US government is uncertain and Trump is doing it.  ultimatum, this provides an opportunity for pressure on the market by the bookies, maybe one of them is an exchange that wants to close the derivatives market from hands that believe it will be bullish this October, it's really crazy fluctuation and we are back above $113k, back to the price after the announcement of the US shutdown, I hope this is just a wick and we will continue to continue rising with a bullish scenario.

[retaur]

The new ath without momentum was a bit measley. I did think we'd fall down to about here ($108k-110k) for healthier price movement onwards and upwards. That being said, a fall from here might be the end of the bull run but no one seems to be considering that so maybe it's unlikely.

I didn't bother trading the swing though, I've sat back and watched this one. Link surprised me though with how far it fell...

[Marykeller]

They always do this, and expect that the recovery is about to happen by Monday when the other markets are open again.

The cause is believed to be the re-escalation of the US-China trade war when Trump announced a 100% tax on Chinese goods. If the situation does not improve and becomes more tense, there will be no recovery at the beginning of the week as this is not a normal correction. Things could get worse if the stock market opens in the red at the start of the week.

This is one of the biggest corrections since the 2020 covid pandemic, even more severe than when the trade war was first announced in April.

This is blatant manipulation and speculation, and again nothing is impossible with crypto, it is beyond our imagination. It's unbelievable that an asset with a market capitalization of a trillion dollars can drop from $122k to $104k in the blink of an eye.

And it can still rise at the same rate it decreases in a few hours, as Bitcoin is heading close to $114k.
I was surprised that we could have Bitcoin fall to $104k after many months the thought of it has passed people's memories of never seeing Bitcoin fall that low this year as the year is coming to an end with few months remaining, which makes it the perfect time for Bitcoin to soar like never before.

Having Bitcoin decrease to this extent reminds us that we can foresee what will happen in the next month or day when it comes to Bitcoin price movement.

[Xylber]

We have allowed the traditional financial and monetary system to have too much influence on the price of Bitcoin. Now Trump talks about anything (taxes, war, investments) and can manipulate the market in whichever direction he wants.

[STT]

Main market stress, nothing more then a standard sell off in markets causing a demand for dollars from any source and ultimately BTC is one of those sources as it is a currency after all in effect even if not legally protected as such.
   You cant have this many speculators from main markets with their money 'invested' in BTC and not have these effects show up in the short term volatility of Bitcoin.  Its the price that must be paid as part of the capital influx that raises the BTC price so high that we see the 100k today as bad somehow.

Its a good sell, enough movement and volume that will take a while to fix more then this just this week I think.  Sharp pin down to near 100k and back to 112k, good action and just give it time to iron itself back out again I think BTC will perform fine.

  BTC price action today turned the 50 day average back away from positive again as it was still taking faltering steps upwards.  Overall I would place it as a good test to deal with now rather then later, passing this test will help greater prices in future.  It does mean once again we fail to close a good weekly bar above the old ATH levels.