Bitcoin Briefly Falls Below $110,000 as Options Traders Hedge Against Possible Further Decline Amid U.S.-China Trade Tensions

Bitcoin price briefly slipped below $110,000 on Thursday as traders increased hedging activity; options data and market-wide liquidations signaled elevated downside risk, while major altcoins tracked Bitcoin lower amid risk-off flows.

• Bitcoin dipped under $110,000 before recovering to $110,418, down 1.3% on the day (CoinGecko).

• Options flows showed >$1.15 billion into shallow OTM puts, concentrated at the $104k–$108k strikes, indicating hedging for further declines (GreeksLive).

• Crypto market cap fell to $3.85 trillion with roughly $524 million in liquidations reported (CoinGecko; CoinGlass).

Bitcoin price update: Bitcoin price slips under $110,000; see market data, options flows, and expert reaction — read COINOTAG’s concise market report now.

Published: 2025-10-16 | Updated: 2025-10-16 | Author: COINOTAG

What is driving the Bitcoin price decline under $110,000?

Bitcoin price weakened below $110,000 on Thursday as traders moved to hedge risk and liquidity rotated toward stablecoins and Bitcoin, reducing demand for altcoins. Options market activity, concentrated put buying and recent large liquidations contributed to downward pressure, with volatility elevated across major assets.

How are options markets and derivatives traders positioning for downside?

Options analytics reported more than $1.15 billion — roughly 28% of total options volume — flowed into shallow out-of-the-money puts expiring this week and next, concentrated near the $104,000–$108,000 strikes (GreeksLive, plain text). This pattern suggests professional liquidity providers and institutional traders are increasing hedges against further declines. Options skew has turned significantly negative, reflecting elevated demand for downside protection and pricing in greater tail risk. Derivatives dashboards also show a recent spike in liquidations after last weekend’s $19 billion event, which continues to influence risk appetite.

Market snapshot: prices, cap and liquidations

According to CoinGecko data, Bitcoin recovered to $110,418, down 1.3% on the day. Ethereum traded near $4,000 (-1.8%), XRP was around $2.40 (-4%), Solana -4.9%, Cardano -3.5%, and Dogecoin -3.9%. Tron was the lone top-ten gainer, up 1.2%. Total crypto market capitalization dropped to approximately $3.85 trillion, while CoinGlass estimated total liquidations at roughly $524 million during the downturn.

What experts are saying

Wenny Cai, co-founder and COO of SynFutures, noted: “Altcoins are under pressure as liquidity continues to rotate back into Bitcoin and stablecoins amid risk-off sentiment.” Max Shannon, senior associate at Bitwise Europe, cautioned that the aftermath of recent deleveraging remains relevant: “There seems to be an overhang from last weekend’s $19 billion liquidation bonanza.” Shannon added that geopolitical friction — specifically U.S.–China trade tensions — is likely to keep price action range-bound until clarity returns.

Frequently Asked Questions

Why did Bitcoin briefly fall below $110,000 today?

Short-term selling was driven by increased hedging in the options market, concentrated put buying around $104k–$108k strikes, and continued deleveraging from a prior $19 billion liquidation event. Market-wide risk-off sentiment amid U.S.–China trade tension also reduced speculative demand (CoinGecko; CoinGlass; GreeksLive).

Will Bitcoin recover quickly from this dip?

Recovery depends on easing geopolitical tensions and the return of stable institutional demand. In the near term, volatility may remain high as leverage resets and capital consolidates around major assets; therefore, quick, sustained recoveries are uncertain.

Key Takeaways

• Immediate market move: Bitcoin briefly dipped under $110,000 and traded near $110,418, with most major altcoins declining.
• Derivatives signal caution: More than $1.15 billion flowed into shallow OTM puts, and options skew turned negative — a clear hedge for downside risk.
• Watch macro and liquidity: Deleveraging after large liquidations and U.S.–China trade tensions are central to near-term price direction; a de-escalation would materially improve recovery prospects.

Conclusion

This market update shows that Bitcoin price weakness under $110,000 was accompanied by concentrated options hedging and meaningful liquidations, underscoring risk-off sentiment across crypto markets. Authorities on market data (CoinGecko, CoinGlass) and options analytics (GreeksLive) confirm the flows, while industry practitioners (SynFutures; Bitwise Europe) emphasize continued caution. Monitor derivatives positioning and macro headlines closely — COINOTAG will provide updates as conditions evolve.