Bitcoin Falls Below $110,000 as ETF Outflows and a Giant Short Pressure Markets

Bitcoin (BTC) slipped below $110,000 during the ongoing session, marking a sharp interruption to a recent recovery that had briefly pushed prices above $116,000. The pullback came amid escalating US-China trade tensions, which rattled markets and triggered sizable redemptions from US-listed spot ETFs.

According to data from SoSoValue, Company Grayscale's GBTC was the largest single contributor to outflows, with $145.3 million withdrawn on October 13. Company Bitwise's BITB and Company Fidelity's FBTC also registered heavy redemptions, while Company BlackRock's IBIT bucked the trend with roughly $60 million in inflows. Overall, US spot Bitcoin and Ethereum ETFs recorded a combined $755 million in net outflows that day, with spot Ethereum ETFs seeing roughly $428.5 million of that total and Company BlackRock's ETHA leading Ethereum redemptions.

Compounding market concerns was the emergence of a high-profile short position attributed to a Hyperliquid trader. Data from Hypurrscan shows the whale increased a leveraged short that is now valued at approximately $496 million at 10x leverage, implying a potential liquidation price near $124,270. The same whale had earlier netted roughly $192 million and has at times held extraordinarily large BTC balances — once reportedly up to $11 billion in BTC exposure.

Speculation around the whale's identity intensified after on-chain investigators and community sleuths suggested links to Mr. Garrett Jin, former CEO of Company BitForex. Mr. Jin publicly denied direct ownership of the fund in question, describing it as a client fund and disputing allegations of insider trading. Public posts and reposts involving Mr. Changpeng Zhao of Company Binance and other investigators amplified the narrative, though no definitive confirmation of the whale's identity has emerged.

Price action through the prior week showed alternating strength and volatility. BTC climbed to intraday highs above $125,000 during a strong phase, then plunged on Friday following President Mr. Donald Trump’s announcement of proposed 100% tariffs and tighter export controls — a policy escalation that coincided with a crypto market crash and momentary dips to roughly $102,000 on some platforms. Despite a partial rebound through the weekend to levels above $115,000, renewed selling pressure pushed BTC back below $110,000 during the current session.

On-chain metrics offer a constructive long-term backdrop: an October 14 analysis by Company CryptoQuant contributor Chairman Lee highlighted that BTC held on centralized exchanges has declined to around 2.4 million BTC, the lowest since 2015. Historically, lower exchange inventories often translate into diminished selling pressure and create conditions for extended rallies if accumulation continues by long-term holders, institutions, or ETFs moving assets to cold storage.

Market participants should weigh the tension between short-term macro risks — notably US-China trade escalation and large leveraged shorts — and structurally bullish supply dynamics on-chain. Traders must also account for heightened volatility and the risk of forced liquidations in highly leveraged positions. This report is provided for informational purposes and is not investment, legal, or tax advice.