Bitcoin Falls to $108k After Trump Meeting and Fed Caution

Bitcoin slid sharply, tumbling to about $108,572 as risk appetite cooled after a high-profile Trump–Xi meeting and fresh caution from the U.S. Federal Reserve. The move came on top of October’s earlier volatility, including the mid-month $19 billion liquidation, and was compounded by renewed scepticism from India’s central bank. Traders now ask: Is this a tactical pullback or the start of a deeper correction, and can BTC reclaim $115k soon?

What are the Triggers Behind the Drop?

The immediate catalyst was the market reaction to the Trump–Xi summit: headlines suggested near-term progress on trade/co-operation, which temporarily eased some of the geopolitical premium that had buoyed risk assets, and crypto specifically, in recent weeks. At the same time, comments from Fed officials signalling caution on the timing of rate cuts knocked confidence across risk markets, prompting rapid de-risking in the crypto market. The combination pushed Bitcoin down roughly 4% intraday, to near $108,060.0.

Adding to the pressure was the memory of October’s flash crash, when leveraged positions were liquidated to the tune of nearly $19 billion, leaving the market structurally fragile to headline shocks and stop-loss cascades. That event removed a lot of speculative leverage, but it also left sentiment brittle.

Is RBI Scepticism and Local Regulators another Headwind?

India’s Reserve Bank reiterated its long-standing sceptical stance on private cryptocurrencies this week, with senior officials warning that private tokens “serve no useful purpose” and pose systemic risks. That tone matters because India is a large, retail-heavy market for crypto; regulatory caution there can dampen domestic trading volumes and growth in on-ramp activity. For global investors, recurrent regulator caution from major jurisdictions increases the odds of episodic sell-offs.

Is The Rally Gaining Momentum Or Losing Steam?

Technical Picture: Is $115k Still Within Reach?

Technically, the $115k area has acted as a psychological and technical pivot this month: Bitcoin briefly traded above $115k in the rally that followed heavy ETF inflows in early October, but it failed to hold that breakout. Analysts point out that a sustained move back above $115k–$116k would open the path toward prior highs again; conversely, a break below $106k could invite another leg lower as liquidity providers pull back. Short-term indicators suggest that momentum has faded on the latest pullback; however, on-chain buying and ETF flows have provided intermittent support.
Markets for spot Bitcoin ETFs have been a key structural support through October. Record inflows earlier in the month helped push BTC to new highs, but ETF flows have become more variable, with some days showing sizable inflows and others showing outflows or muted demand. That stop-start pattern makes technical rebounds possible but not guaranteed.

What Investors Should Watch Now (Practical Signals)

• Macro prints & Fed commentary: CPI, payrolls and Fed speeches can quickly change rate-cut expectations, and with them, real yields and crypto’s risk premium.
  
• ETF flow data: Daily net flows into U.S. spot BTC ETFs remain a live read on institutional demand; a return to consistent inflows would materially improve the odds of a push.
  
• On-chain metrics: Active addresses, exchange inflows and long-term holder behaviour will signal whether the drop is due to distribution or simple profit-taking.
  
• Options and liquidations: Open interest and the structure of options strikes indicate where market makers and leveraged players are positioned; large put buying or concentrated strikes can amplify market movements.
  
• Regulatory headlines, especially India: Any firm regulatory step (bans, exchange restrictions or tax changes) from large markets like India would materially affect local demand and flows.
  

Conclusion

Bitcoin’s drop to roughly $108k reflects a classic mix of headlines (Trump–Xi, Fed caution), fragile post-liquidation market structure, and renewed regulatory scepticism from major players like the RBI. The central question for investors is: Will renewed ETF demand and benign macro data push Bitcoin back above $115k, will rate fear and regulatory headwinds keep it range-bound, or push it lower?

References

The Economic Times
Financial Express
Investing.com India
Reuters
Business Standard
BeInCrypto
SoSoValue
Coinglass