Bitcoin Plunges Below $113K: Trade War Escalation Fuels Crypto Sell-Off in 2025

Bitcoin's sharp decline below $113,000 on October 14, 2025, signals mounting pressures in the cryptocurrency market, amplified by escalating global trade tensions. Institutional ETF outflows persist, draining liquidity, while corporate holders like Metaplanet see their market value dip under their Bitcoin reserves. This article breaks down the drivers behind the drop, community fears, and strategic trading insights for navigating this volatile phase in decentralized finance.

Bitcoin's Rapid Pullback: Key Triggers Exposed

The cryptocurrency giant Bitcoin has accelerated its downturn, breaching the critical $113,000 support amid broader economic jitters. Heightened trade war rhetoric between major economies is stoking investor anxiety, echoing 2018-2019 patterns where tariffs disrupted risk assets. Compounding this, spot Bitcoin ETFs report sustained net outflows, with over $200 million exiting in the past week alone, per on-chain data. Metaplanet's stock, a proxy for corporate Bitcoin exposure, now trades below its underlying BTC holdings, underscoring overvaluation concerns in a risk-off environment. These factors blend macroeconomic headwinds with blockchain-specific flows, pressuring prices toward lower supports.

• Trade War Impact: Escalating tariffs threaten global growth, historically correlating with 15-20% BTC corrections.
• ETF Outflows: Institutional redemptions signal fading bull momentum, hitting $500M+ YTD.
• Metaplanet Signal: Market cap under BTC reserves highlights leverage risks in crypto treasuries.
• Sentiment Gauge: Fear & Greed Index at 28, per alternative.me, indicating extreme caution.

Market Sentiment Shifts to Fear: Institutional and Retail Reactions

As Bitcoin trends lower, community emotions have swung toward outright fear, with social volumes on platforms like X spiking 40% on bearish keywords. High-leverage shorts from whales are piling in, amplifying downside momentum and triggering liquidations exceeding $1B daily. This environment favors defensive positioning, where rebound attempts serve as profit-taking opportunities rather than trend reversals. Real-world parallels include the 2022 FTX fallout, where fear cascades led to prolonged consolidations, emphasizing the need for robust wallet security amid exchange mechanism strains.

• Whale Activity: Main force adding to empty positions, per Glassnode, with 70% of open interest bearish.
• Liquidation Risks: Over $300M in longs wiped out below $113K, per Coinglass.
• Emotional Drivers: Trade war news dominates feeds, reducing retail FOMO to historic lows.

Trading Guide: Short-Term Bearish Strategies for BTC

In this setup, Bitcoin's short-term bias leans bearish, urging traders to monitor volume for confirmation. If $113,630 fails to reclaim with amplified trading activity, consider short entries targeting $110,308-$108,870, with stops above $115,850. Aggressive styles should enter and exit swiftly on bounces, while trend followers prioritize weekly closes—阳线 for oscillation, 阴线 potentially ending the rally from $74,000. The bull market's late stage demands defense, with $113,410 as a key exit zone; post-crash, heightened exchange risks call for reduced exposure or sidelines.

• Short Entry: Below $113,630 sans volume; aim for 2-5% downside.
• Stop-Loss: $115,850+ to cap losses at 1-2%.
• Rebound Play: Use spikes for scaling out, avoiding overleverage.
• Weekly Trigger: 阳收盘 = hold range; 阴 = wave trading with flexible sizing.
• Risk Note: Prioritize compliant platforms for secure, transparent trades.

2025 Outlook: Defending Gains in a Choppy Crypto Landscape

Looking ahead, Bitcoin's trajectory hinges on trade resolutions and ETF inflows, with decentralized finance innovations like layer-2 scaling offering hedges.

• Upside Catalysts: Fed pauses or tariff de-escalation could spark 10% rebounds.
• Downside Threats: Persistent outflows may test $100K psychological floor.

In summary, Bitcoin's drop below $113K amid trade war fears marks a defensive pivot, with ETF drains and sentiment lows demanding caution. Key takeaways: Lean short-term bearish but watch weekly closes for shifts, always on licensed exchanges. For more, track on-chain metrics or explore blockchain basics—position wisely to weather the storm.