An illustration of a physical unit of cryptocurrency bitcoin

Bitcoin prices fell more than 6% on October 22.

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Bitcoin prices experienced a modest drop on Wednesday, October 22, declining below $107,000 after rising to more than $114,000 the day before.

“Bitcoin’s drop is the market catching its breath after a wild run,” Maja Vujinovic, CEO and cofounder of digital assets at FG Nexus, stated via email.

“Traders took profits, leverage got flushed out, and fears over Trump’s new China tariffs plus MicroStrategy’s huge Bitcoin bets made everyone more cautious,” she stated. “Add a sudden gold sell-off and you get a global risk-off chain reaction.”

“In simple terms: Bitcoin didn’t fall because people lost faith, it fell because it’s now tied to everything from politics to corporate debt to trader greed.”

Several other analysts also described the latest pullback as a natural retracement in the bitcoin markets.

“Traders took chips off the table following the break to all-time highs, and leveraged long positions began to unwind as funding rates spiked across derivatives exchanges,” Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, said through emailed comments.

After bitcoin reached an all-time high earlier this month, traders began taking profits, “creating short-term selling pressure and a healthy market reset,” he added.

“Additionally, a modest rebound in the U.S. dollar and Treasury yields added macro pressure, prompting some rotation out of risk assets,” said the market observer, highlighting another cause of the recent price drop.

“Despite the correction, sentiment remains constructive, with buyers likely to reemerge around the $105,000–$107,000 support range,” he continued, offering a short-term outlook for the world’s most prominent digital currency.

Shashank Sripada, cofounder & COO of GAIA, also weighed in.

“Bitcoin’s pullback from $114K to roughly $106K is not irrational — it’s what Adam Smith or Hayek would describe as a self-correcting response to overheated positioning,” he stated via email.

“With U.S. rates still elevated, global liquidity mixed, and geopolitical risks rising, investors are temporarily prioritizing Keynesian liquidity preference—holding dollars, USDC, Gold, over risk,” the analyst continued.

“Also, the unusual deleveraging a week or so ago of bitcoin seems to have also shaken institutional accounts with heavy leverage hence the volatility,” he added.

“This looks less like trend reversal and more like a rational de-leveraging event within a still-intact structural uptrend.”

“As long as BTC defends the $100-105K support band, this is capital rotation — not capitulation,” Sripada concluded.

‘A Clear Shift’ In Market Direction

Mostafa Al-Mashita, cofounder & director of sales and trading for Secure Digital Markets, offered a differing perspective.

“Bitcoin’s recent retracement signals a clear shift in direction rather than a simple pause,” he stated through comments received through Telegram. “Liquidity has thinned out, and market participants have become more selective in deploying capital.”

“With traders hesitant to take on new positions until price action moves decisively higher or lower, the market is effectively stuck in the middle, reflecting reduced risk appetite and tighter participation,” the analyst concluded.

Continued Progress

While volatility is an everyday characteristic of cryptocurrencies, the markets for these innovative assets continue to progress, according to Chris Robins, head of growth and strategic partnerships at Axelar.

“Volatility will always be part of the crypto landscape, but the market is clearly maturing,” he stated via email.

“More investors are taking a long-term view, using time-tested strategies like basis trades to manage risk and smooth out returns. There is a broader rotation toward sustainable investments rather than short-term speculation,” added Robins.

“We’re seeing investors move away from chasing short-term volatility and instead focus on building long-term positions in high-quality assets,” he continued. “A more interconnected DeFi landscape is giving them new ways to put those holdings to work, combining blue-chip assets, proven yield strategies and built-in hedges against short-term volatility.”

“The result is a more disciplined approach to risk and return, where crypto portfolios start to look more like those in traditional markets: positioned for long-term growth based on real innovation,” Robins concluded.