Bitcoin News Today: BTC Holds $110K After Historic $19B Crash

Bitcoin news today reveals remarkable resilience as bitcoin price stabilizes above $110,000 following an unprecedented $19 billion liquidation cascade—the largest bitcoin crash in crypto history. This bitcoin analysis examines whether now is the right time to buy bitcoin as markets digest the historic volatility.

Despite erasing nearly $500 billion in market cap, bitcoin today holds strong above psychological support, suggesting the worst may be over. Professional traders are positioning for upside through options markets while institutional money continues flowing into Bitcoin ETFs.

Key Highlights:

• Bitcoin maintains $110K support despite record liquidations
• Options traders pay premiums for bullish exposure
• Institutional flows remain positive post-crash
• Altcoins like XRP and Solana show recovery signs
• Gold and silver surge as traditional safe havens
• Expert bitcoin target predictions range $120K-$300K

Bitcoin Holds Strong After $19B Liquidation Event

Bitcoin price defended the critical $110,000 level following last week’s catastrophic $19 billion liquidation—the largest forced selling event in cryptocurrency history. The crash erased nearly $500 billion from total crypto market cap, yet Bitcoin’s resilience suggests the leverage purge is complete.

What Caused the Massive Crash?

The liquidation cascade began when over-leveraged traders using 25x-50x leverage faced margin calls as Bitcoin slipped from $114,000 to $112,000. These forced closures triggered more liquidations, accelerating downside to $108,000 before stabilizing.

Key factors behind the crash:

• Extreme funding rates (+0.10%+) indicating overcrowded long positions
• US-China trade tensions triggering risk-off sentiment
• Large government and BlackRock wallet movements creating fear
• Cascading margin calls across major exchanges

New to crypto? Our Introduction to Cryptocurrency guide explains the basics before you start trading in volatile markets like this.

Historical Context Matters

Previous major liquidation events:

• March 2020 COVID Crash: $1.2B liquidations, BTC fell to $3,800
• May 2021 China Ban: $8.6 billion, BTC dropped to $30,000
• November 2022 FTX: $4.1 billion, BTC declined to $15,500
• October 2025: $19 billion, BTC held above $110,000 ✓

The current event’s size reflects market maturation, but Bitcoin’s modest decline and quick stabilization show improved market structure compared to previous crashes.

Derivatives Markets Reset: Bulls Taking Control

Bitcoin analysis of futures and options markets reveals cautious optimism replacing fear-driven selling.

Futures Market Stabilizes

Futures open interest dropped to 85% of pre-crash levels across major exchanges (Binance, Bybit, Deribit, OKX). Funding rates normalized to near-zero (+0.01%), eliminating the extreme positive funding that preceded the crash.

Average leverage compressed from 25x-30x to 10x-15x—dramatically reducing systemic risk and creating healthier foundation for recovery.

Options Traders Bet on Upside

Despite cautious futures positioning, options markets show strong bullish conviction:

Deribit Volatility Index (DVOL):

• Peak crash: 95+ (extreme fear)
• Current: 70-75 (elevated but declining)
• Historical pattern: This range often precedes major moves

Put/Call Ratio: Dropped from 1.20 (fear) to 0.65 (bullish)

Major Call Option Concentrations:

• $115,000 strike: 8,500+ BTC
• $120,000 strike: 12,000+ BTC
• $125,000 strike: 6,500+ BTC

These concentrations create price magnets as expiration approaches, with market makers buying Bitcoin to hedge their sold calls.

Master Technical Analysis for Beginners to identify optimal entries using support/resistance and momentum indicators.

Ready to trade derivatives? Deribit dominates 80%+ of crypto options markets with institutional-grade execution and deep liquidity.

Institutional Money Still Flowing In

Large wallet movements by US government and BlackRock created short-term fear, but the reality is less concerning than headlines suggest.

US Government Bitcoin Holdings

The government holds 200,000+ BTC from criminal seizures (Silk Road, Bitfinex hack). Recent 10,000+ BTC transfers to unmarked wallets sparked liquidation fears.

Reality check: Government sales follow structured procedures with advance announcements. These transfers likely represent custody reorganization, not imminent selling.

BlackRock Bitcoin ETF Booming

BlackRock’s iShares Bitcoin Trust (IBIT) holds 500,000+ BTC and saw $500M+ in net inflows following the crash. This contradicts fears of institutional selling—professionals are buying the dip.

Large transfers between BlackRock wallets and Coinbase Prime reflect normal ETF operations (creation/redemption processes), not directional bets.

Compare platforms in our Best Cryptocurrency Exchanges 2025 guide covering fees, security, and features.

Macro Headwinds Still Pressuring Markets

Bitcoin news today can’t ignore broader economic risks affecting all assets.

US-China Trade War Escalating

New tariff threats and retaliatory measures drive risk-off sentiment. Bitcoin’s 0.65 correlation with S&P 500 means crypto follows equities during uncertainty—the “digital gold” narrative hasn’t fully materialized yet.

Government Shutdown Risks

US government dysfunction creates additional uncertainty, complicating Fed policy and regulatory clarity for crypto.

$630M in Additional Liquidations

Beyond the $19B main event, ongoing macro uncertainty triggered $630M in subsequent forced selling. Bitcoin continues trading as a risk asset during stress periods, not a safe haven.

Understanding Risk Management & Trading Psychology becomes crucial for surviving volatile, macro-driven markets.

Altcoins Showing Recovery Strength

While bitcoin today dominates headlines, altcoin markets show encouraging signs as leverage clears out.

XRP Technical Breakout Potential

XRP’s open interest collapsed 50% during the crash, but price rebounded from $0.80 to $2.50—strong accumulation signal.

Key levels to watch:

• Resistance: $2.65 (breakout level)
• Support: $2.30-$2.50 (accumulation zone)
• Downside stop: $2.20

Fundamental catalysts include Ripple-SEC legal progress and expanding RippleNet adoption.

Solana Finds Support

SOL endured 9% volatility but established firm support at $191-$194. Institutional interest growing through DeFi activity and custody expansion.

Trading outlook:

• Resistance: $210-$220
• Current support: $195
• Stop-loss: Below $188

ARK Invest’s continued accumulation validates Solana as serious blockchain infrastructure play.

Diversifying beyond Bitcoin? Check our Best Altcoins to Buy Now 2025 covering promising Layer-1s, DeFi, and real-world asset projects.

Gold & Silver Surge While Crypto Consolidates

Traditional safe havens are rallying while crypto digests volatility—an important divergence.

Gold Hits Near-Record $4,167/oz

Gold surged +0.56% daily and +55% year-over-year driven by:

• Fed policy uncertainty and potential rate cuts
• Government shutdown concerns
• US-China trade war escalation
• Central bank buying (especially emerging markets)

Silver Outperforms at $52.17/oz

Silver gained +1.48% daily and +64% annually, driven by industrial demand (solar panels, electronics) plus monetary flows.

Gold-silver ratio: Compressed from 90:1 to 80:1, suggesting silver outperformance continues if compression reaches 70:1.

What This Means for Bitcoin

The divergence reveals Bitcoin hasn’t achieved safe-haven status yet—institutions still prefer gold during uncertainty. However, long-term thesis suggests Bitcoin will eventually bridge this gap as adoption matures and volatility decreases.

Should You Buy Bitcoin Now?

With bitcoin price at $110,000 post-crash, here’s what different investor types should consider:

Bullish Arguments

✅ Leverage purge complete – $19B flush-out eliminates weak hands
✅ Support holding – $110K defended multiple retests
✅ Options positioning bullish – Pros buying calls aggressively
✅ Institutional flows positive – $500M+ BlackRock inflows
✅ Historical precedent – Major liquidations often mark bottoms
✅ Technical support – Strong demand zone $108K-$110K

Bearish Concerns

⚠️ Macro headwinds persist – Trade war, government shutdown risks
⚠️ Recovery uncertain – Previous bears saw multiple failed rallies
⚠️ Government overhang – Potential sales from 200K+ BTC holdings
⚠️ Technical resistance – Major barriers at $115K, $120K, $130K
⚠️ Funding rate risk – Could spike if longs rebuild too quickly

Strategy by Investor Type

Conservative (Long-Term Holders):

• Dollar-cost average at current levels
• 6-12 month minimum holding period
• Allocate 5-10% of investment portfolio
• Risk only capital you can hold through volatility

Moderate (Swing Traders):

• Buy 50% now, reserve 50% for $105K-$108K dip
• Take profit at $120K and $130K
• Stop-loss below $105K
• Use Crypto Trading for Beginners strategies

Aggressive (Short-Term):

• Use derivatives with defined risk
• Buy call options at $115K-$120K strikes
• Risk only 2-5% per position
• Active monitoring required

Risk-Averse (Wait for Confirmation):

• Wait for breakout above $120K
• Start with 2-3% allocation
• Scale up with momentum confirmation

Key Levels to Monitor

Support Zones (Buy):

• $108K-$110K (current primary)
• $100K-$102K (psychological)
• $95K (critical breakdown level)

Resistance Zones (Sell):

• $115K (first target)
• $120K (major barrier)
• $130K-$135K (ATH region)

New to investing? Start with Crypto for Beginners covering wallet setup, exchange selection, and security basics.

Bitcoin Price Predictions for 2025

Analysts update bitcoin target projections following the crash:

Short-Term (1-3 Months)

Conservative: $120,000-$125,000 (+9-14%)
Base Case: $130,000-$140,000 (+18-27%)
Bullish: $150,000-$160,000 (+36-45%)

Medium-Term (6-12 Months)

Conservative: $140,000-$160,000 (+27-45%)
Base Case: $180,000-$220,000 (+64-100%)
Bullish: $250,000-$300,000 (+127-173%)

Key Factors

Positive Catalysts:

• Fed rate cuts improving sentiment
• Regulatory clarity from SEC/CFTC
• Corporate treasury adoption
• ETF inflows accelerating
• Sovereign/central bank adoption

Negative Risks:

• Extended trade war
• Higher-for-longer Fed policy
• Exchange collapses
• Adverse regulations
• Government BTC sales

Compare trading platforms in our Top Crypto Exchanges 2025 covering liquidity, fees, and security features.

Protecting Your Bitcoin Investment

Security becomes critical as markets fluctuate. Proper custody prevents losses from hacks and errors.

Wallet Security Essentials

Hardware Wallets (Long-Term):

• Store 90%+ holdings offline
• Ledger, Trezor from official sources only
• Backup seed phrases in multiple locations
• Never enter seeds on computers/phones

Hot Wallets (Trading):

• Keep only 5-10% for daily use
• Enable 2FA, withdrawal whitelist
• Unique, complex passwords
• Monitor daily for unauthorized activity

Exchange Security:

• Use platforms with insurance funds
• Enable Google Authenticator (not SMS)
• Whitelist withdrawal addresses
• Test small amounts before large transfers

Full security guide: Wallets & Security covering hardware wallets, backup procedures, and threat protection.

Avoiding Common Scams

Phishing Prevention:

• Verify URLs character-by-character
• Use bookmarks, never click email links
• Check for HTTPS and padlock
• Enable anti-phishing codes

Never Share:

• Passwords or 2FA codes
• Screen access with “support”
• Private keys or seed phrases
• Account credentials via social media

Red Flags:

• “Guaranteed returns” or “risk-free” schemes
• Recruiting requirements (pyramid structure)
• Unsolicited support contact
• Pressure for immediate action

Tax Considerations

Understanding tax obligations prevents penalties and optimizes returns.

Basic Tax Treatment

Taxable Events:

• Selling bitcoin for fiat
• Trading bitcoin for altcoins
• Using bitcoin for purchases
• Receiving bitcoin as payment
• Mining or staking rewards

Non-Taxable Events:

• Buying bitcoin with fiat
• Transferring between your wallets
• Holding bitcoin (no transactions)
• Gifting below annual limits

Holding Period Matters

Short-Term (<1 year):

• Taxed as ordinary income
• US: 10-37% depending on bracket
• Higher rates encourage longer holds

Long-Term (>1 year):

• Preferential tax treatment
• US: 0%, 15%, or 20% rates
• Significant savings vs short-term

Tax Loss Harvesting

Sell losing positions before year-end to offset gains:

• Losses offset gains dollar-for-dollar
• Excess losses carry forward
• Time sales strategically
• Watch wash sale rules (varies by jurisdiction)

Record-Keeping Tools:

• CryptoTrader.Tax
• Koinly
• TokenTax
• Exchange export functions

Daily Market Summary

Stay informed with key bitcoin news today metrics:

Price Action:

• Bitcoin: $110,250 (-0.5% 24h)
• Support: $108,000-$110,000
• Resistance: $115,000-$120,000

Volume:

• 24h volume: $45 billion (above average)
• Exchange inflows: 12,500 BTC/day
• Exchange outflows: 18,000 BTC/day
• Net outflows: 5,500 BTC/day (bullish)

Derivatives:

• Futures OI: $28 billion
• Funding rate: +0.01% (neutral)
• Put/call ratio: 0.65 (bullish lean)
• DVOL: 72 (elevated but declining)

Sentiment:

• Fear & Greed Index: 35 (Fear)
• Social sentiment: Cautious optimism
• Whale accumulation: +25,000 BTC/week
• Long-term holders: 68% (increasing)

Subscribe to our Daily Crypto Market Updates for consistent coverage.

Conclusion: What’s Next for Bitcoin?

Bitcoin news today reveals markets at a critical inflection point. The historic $19 billion liquidation eliminated excessive leverage, creating healthier structure for recovery. Bitcoin price stability above $110,000 demonstrates underlying strength despite macro headwinds.

Key takeaways:

• Leverage purge complete; market structure improved
• Professional traders positioning bullish via options
• Institutional flows remain positive post-crash
• Support at $110K critical; resistance at $115-120K
• Macro risks persist but haven’t broken Bitcoin

For different investors:

• Long-term holders: Accumulate during volatility with DCA
• Swing traders: Wait for $120K breakout or $105K pullback
• Risk-averse: Confirm above $120K before entering
• Beginners: Study fundamentals before trading

Whether you’re looking to buy bitcoin at current levels or waiting for confirmation, disciplined risk management and emotional control separate successful traders from liquidated positions.

Ready to start trading? Deribit offers institutional-grade derivatives with 50x leverage on futures and the world’s deepest options markets.

Frequently Asked Questions

Q1: Why did Bitcoin crash from $114K to $108K?

The $19 billion liquidation cascade resulted from excessive leverage (25x-50x) and extreme funding rates indicating overcrowded long positions. When prices dipped slightly, margin calls triggered automatic liquidations that accelerated downside until all leveraged positions were eliminated.

Q2: Is now a good time to buy Bitcoin at $110,000?

Historical data shows major liquidation events often mark local bottoms, making them attractive for long-term investors. However, macro headwinds (trade tensions, Fed policy) create short-term uncertainty. Conservative approach: dollar-cost average. Aggressive: wait for $120K breakout confirmation.

Q3: What caused the $19 billion liquidation event?

Multiple factors: (1) Extreme leverage buildup, (2) Positive funding rates >+0.10%, (3) US-China trade tension fears, (4) Government wallet movements, (5) Cascading margin calls across exchanges. Over-leveraging created fragile market structure vulnerable to sharp corrections.

Q4: Where will Bitcoin’s price go next?

Short-term targets: $120K-$140K within 3 months if macro improves. Medium-term: $180K-$220K by year-end if institutional flows continue. Key levels: Support at $108K-$110K, resistance at $115K-$120K. Breakdown below $105K suggests extended correction.

Q5: How do I protect my Bitcoin during crashes?

Never use excessive leverage (stick to 2-5x maximum). Use stop-losses on all positions. Store long-term holdings in hardware wallets, not exchanges. Maintain 50% equity buffer above liquidation prices. Learn proper Risk Management & Trading Psychology.

Q6: Should I trade Bitcoin derivatives or buy spot?

Spot ownership suits long-term holders and beginners (no liquidation risk). Derivatives offer capital efficiency through leverage but require active monitoring and sophisticated risk management. Start with spot; advance to derivatives only after mastering margin mechanics. Compare options at Best Crypto Exchange Platforms 2025.

Q7: What are the best Bitcoin exchanges after this volatility?

Prioritize proven security, deep liquidity, insurance funds, and regulatory compliance. Top choices: Binance (global liquidity), Coinbase (US regulated), Kraken (security record), Deribit (derivatives specialist). Full comparison: Best Cryptocurrency Exchanges 2025.

Q8: Why is gold rallying while Bitcoin consolidates?

Gold maintains safe-haven status during uncertainty (trade war, government dysfunction) while Bitcoin still trades as a risk asset with 0.65 correlation to stocks. Long-term thesis: Bitcoin will achieve safe-haven status as adoption matures and volatility decreases. Current divergence may be multi-year transition period.

Q9: Are altcoins good investments right now?

XRP and Solana show recovery strength with improving technicals and institutional interest. However, most altcoins remain 70-80% below peaks. Focus on projects with strong fundamentals, real utility, and institutional backing. Explore options: Best Altcoins to Buy Now 2025.

Q10: How do I learn crypto trading properly?

Start with fundamentals: Introduction to Cryptocurrency, then advance to Crypto Trading for Beginners. Master Technical Analysis before using leverage. Practice with small amounts, journal every trade, and never risk more than 2% per position.

Market Disclaimer: Cryptocurrency trading involves substantial risk. Bitcoin price volatility can result in total loss. This analysis provides educational information only—not financial advice. Never invest more than you can afford to lose. Conduct thorough research and consult licensed advisors before trading.