There is a large-scale correction in the cryptocurrency market. Bitcoin 
$111,963.18has been testing a critical support level with increasing selling pressure and institutional outflows in recent weeks. According to CoinGecko data, BTC is trading at $110,800, down approximately 3.4%. Ethereum 
$4,011.20 It lost 4.5% in value and fell below $4,000. The total cryptocurrency market value decreased by 4.4% in the last 24 hours, falling to 3.85 trillion dollars.
Geopolitical Tensions Deepen the Impact
CryptoQuant analyst Maarten Regterschot stated that Bitcoin is approaching the “short-term investor realized price” of $ 112,500, and said that this level usually works as a strong support in bull markets, but that it has been tested four times recently, weakening this power.
“This level has been tested for the fourth time in the last 1.5 months, this is a sign of weakness,” said Regterschot, adding, “Each test weakens. It seems that buyer interest is decreasing.”
CEX.IO Chief Analyst Ilia Otychenko stated that the trade war concerns, reignited by the Chinese Ministry of Commerce’s statement that “we will fight to the end”, weakened the recovery signals in the market. These statements brought the uncertainty between the USA and China back to the agenda.
During the same period, there was also a sharp rise in spot Bitcoin ETFs traded on the US stock exchange. According to SoSoValue data, there was an outflow of $326.5 million from US-based spot Bitcoin ETFs on October 13. This follows the year’s highest entry level just a week ago on October 6. “Crypto ETFs are still feeling the impact of last week’s tariff-induced selloff. If tensions continue, outflows may follow,” Otychenko explained.
Investor Sentiment Is Changing Rapidly
The uneasiness in the market is also reflected in the drastic change in investor sentiment. While the “greed” indicator on the Myriad prediction platform, created by Decrypt’s parent company DASTAN, was 64.1% at the beginning of the week, it dropped below 50% at the time of writing. On the other hand, the “fear” rate increased to 51.1%. This chart shows that investors’ tendency to avoid risk is increasing.
According to Regterschot, if the $112,500 level is broken, the next strong support for Bitcoin will be at $103,500. “During the 2025 bull period, the price found support around 10% below the cost average of short-term investors. If the bull cycle is still not over, this level may be the next stop for Bitcoin,” he said.
On the other hand, there is also a remarkable development on the Ethereum side. According to Ultra Sound Money data, while the burn rate on the network has increased, the ETH supply in circulation has decreased in the last week. This situation strengthens the comments that ETH has evolved into a deflationary structure in the long term. However, as long as the overall market remains weak, this structural advantage is not expected to be reflected in prices in the short term.
Bitcoin’s rise to a critical threshold indicates a fragile period in which both technical and geopolitical elements are intertwined. ETF outflows and declining investor confidence indicate that the market will remain cautious for a while. However, the possibility of a short-term recovery is still on the table if strong supports are maintained. In the long term, the re-increase in corporate inflows will be the most important factor that will determine the direction of the market.
