On October 11, 2025, the price of Bitcoin plummeted from a high of $126,000, with a maximum daily fall of 13.5%, reaching a low of $105,900, marking the most severe decline since April of this year.

The recent big dump of BTC is the result of multiple factors working together, mainly including the following aspects:

• Macroeconomic policies and economic environment: On one hand, U.S. President Trump has threatened to significantly increase tariffs, raising concerns about escalating global trade friction, prompting investors to flee from risk assets, with Bitcoin being the most affected high-risk asset. On the other hand, the divergence in market expectations regarding Federal Reserve policies has exacerbated panic. Previously, investors generally anticipated interest rate cuts to boost the market, but the ambiguity of policy signals has accelerated the flow of funds into safe-haven assets like gold, pushing gold prices above $4000 per ounce, which has also impacted Bitcoin prices. Additionally, the WTO has halved its global trade growth forecast for 2026 to 0.5%, while Japan and South Korea's PMI has been below the neutral line for three consecutive months, indicating a weak global economic recovery, which has further deepened market concerns about tightening liquidity.

• Leverage trading triggers a vicious cycle: Before the plummet, Bitcoin futures open interest reached a peak of $30 billion, with many investors using 50-100x leverage trading. When the price fell below key levels such as 120,000 and 115,000, programmatic trading automatically triggered stop-losses, creating a vicious cycle of "the more it falls, the more liquidations occur; the more liquidations occur, the more it falls," further exacerbating the sell-off pressure. According to Coinglass data, 1.644 million people were liquidated globally that day, with total liquidation amounts reaching $19.216 billion.

• Whale sales and regulatory shadows: Data shows that on the eve of the big dump, 12,000 Bitcoins (approximately $1.4 billion) were concentrated and transferred to exchanges for sale, which may be a result of whale selling behavior, exacerbating the selling pressure in the market. At the same time, there are reports in the market about the U.S. Department of Justice planning to liquidate $8 billion worth of involved Bitcoins, and the European Union's new cryptocurrency regulations are about to be implemented, with multiple negative factors combining to trigger a collapse in market confidence.

• Market panic sentiment spreads: The plummet of Bitcoin prices, the uncertainty of Federal Reserve policies, and the chain reaction of leveraged liquidation have collectively led to the formation of market panic sentiment. Investors see the continuous fall in Bitcoin prices and worry that their assets will suffer greater losses, leading them to join the ranks of sellers. In addition, extensive media coverage has intensified the atmosphere of panic in the market, causing more investors to fall into a state of panic. #BTC