Bitcoin News Update: Bitcoin Retreats from $112K Peak Amid Geopolitical Strains and ETF Withdrawals Despite Fed Optimism

a Benzinga report.>

According to Benzinga, Bitcoin climbed to $112,000（UTC+8） on October 21, 2025, driven by growing optimism about the Federal Reserve’s consideration of payment solutions for crypto companies and positive macroeconomic sentiment. However, the surge was brief, as the cryptocurrency slipped below $110,000（UTC+8） amid rising trade tensions between the U.S. and China and increased investor caution, which was evident in ETF outflows. This price volatility highlighted how sensitive the crypto sector remains to global political events and central bank policy cues.

Coinotag report.>

Coinotag reported that Bitcoin’s value dropped by 2.96% to $107,982（UTC+8） as uncertainty mounted ahead of a crucial October 2025 summit between U.S. President Donald Trump and Chinese President Xi Jinping in South Korea. Ongoing U.S.-China tensions, which had previously led to a 3.19% daily drop in

and a 4.55% loss in , reemerged as significant risks for the crypto market. Analysts pointed out that the geopolitical standoff, combined with a prolonged U.S. government shutdown, heightened overall economic uncertainty and encouraged investors to move away from riskier assets.

CoinPedia report.>

The downturn was made worse by investors pulling out of U.S. spot crypto ETFs. On October 20, Bitcoin ETFs saw $40.47 million in outflows, with BlackRock’s IBIT accounting for $100.65 million in withdrawals, while Ethereum ETFs experienced $145.68 million in outflows, as reported by CoinPedia. These outflows contrasted with earlier reports of $20 million in Bitcoin ETF inflows from some analysts in a CryptoNews article, highlighting the market’s volatility. The net withdrawals reflected a broader trend of both institutional and retail investors adjusting their portfolios in response to economic and geopolitical challenges.

Bitcoinsistemi analysis.>

In an analysis by Bitcoinsistemi, BTSE COO Jeff Mei attributed the market’s fluctuations to “macro concerns” such as U.S.-China trade disputes and the Federal Reserve’s policy direction. “As long as these issues continue, volatility will persist,” Mei said, noting that traders were becoming more cautious ahead of key policy decisions, including the Fed’s upcoming rate announcement in October. He also cautioned that the market remains vulnerable to unexpected events, such as Trump’s recent proposal of a 157% tariff on Chinese imports, which had stalled Bitcoin’s rally earlier that week, according to the analysis.

FXEmpire outlook.>

Despite recent instability, some experts maintain a guardedly positive outlook. FXEmpire noted that markets are currently factoring in a 99% likelihood of a Fed rate cut in October, which could help keep Bitcoin above the $100,000 mark in the short term. Additionally, October’s ETF inflows of $3.78 billion, despite recent outflows, have contributed to price stabilization. However, veteran commodities trader Peter Brandt warned that Bitcoin’s 8.2-fold rally from previous lows may have reached its peak, suggesting a correction could be on the horizon, as referenced in Coinotag.

Economic Times article.>

The volatility in the crypto market is unfolding alongside broader economic changes. Gold, for example, has soared past $4,000 in 2025, with JPMorgan forecasting it could reach $8,000 by 2028 as investors look for safer assets, according to the Economic Times. Meanwhile, Ethereum’s technical signals point to a possible recovery, with on-chain data indicating accumulation by major holders, as previously mentioned in the CryptoNews report. The dynamic between cryptocurrencies, gold, and traditional investments highlights the complex factors influencing market sentiment.