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Bitcoin price is trading around $113,000 after touching a record high near $126,000 in early October 2025.
Strong inflows into Bitcoin ETFs and other ETFs boosted market momentum early in the month.
A mid-October correction showed how leverage and low liquidity still drive Bitcoin volatility.
During October 2025, Bitcoin price moved within a notably wide range. At the start of the month, it was trading in the low-to-mid six-figure region in US dollars. Then the price climbed to near $124,000–$126,000 before pulling back sharply in mid-October and recovering somewhat into the $112,000–$115,000 zone by late October. In this timeframe, the key support level near $105,000 was tested during the drop, while resistance formed around the $126,000 margin.
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A number of factors combined to push Bitcoin’s price higher and then cause the correction.
Expectations around the policy decisions of the Federal Reserve played an important role. Market participants largely priced in a rate cut, which tends to encourage more risk-taking investments like cryptocurrencies since lower yields on safe assets make risk assets more attractive.
When signals came from central-bank communications suggesting easing might arrive, Bitcoin benefited; but when uncertainty or stronger-than-expected rate language surfaced, volatility increased.
Another key driver has been the increasing presence of institutional-type investment in Bitcoin via exchange-traded funds (ETFs). In early October, global crypto ETFs pulled in nearly $6 billion in a single week, as demand for digital-asset exposure surged. Around October 5, Bitcoin reached a new all-time high near $125,689, largely driven by favourable ETF flows and a weaker US dollar.
At the same time, volume data suggest room for growth in participation: even as net inflows into US spot Bitcoin ETFs turned positive again near late October, daily flow rates remained below the peaks seen earlier in the cycle.
The correction in mid-October highlighted important structural risks. According to noted data, futures-market open interest for Bitcoin had climbed to record heights earlier in the month, and when a sharp drawdown occurred, margin liquidations triggered cascading moves. This shows that in addition to the “buy” side, the selling pressures and derivatives mechanics can rapidly push price lower when sentiment shifts or liquidity withdraws.
From a technical standpoint, the chart reveals the wide trading band of roughly $105,000 to $126,000. If Bitcoin decisively breaks above the $124,000–$126,000 zone, it would open the door for further gains; conversely, a break below support near $105,000 could open the door to deeper corrective action.
Bitcoin price prediction states that the ongoing institutional adoption of regulated products will remain positive for the medium-term narrative. The cryptocurrency’s interplay with macro factors is critical. With leverage high in the derivatives market and on-chain activity showing signs of accumulation, the environment remains favourable for upside, but only while confidence and liquidity hold.
Future policy surprises from the Fed or other major central banks are one of the biggest risks for BTC. Regulatory developments can impact Bitcoin ETF flows, and concentrated derivatives positions could trigger cascading unwinds. On the positive side, strong inflows into ETP products or renewed macro easing could serve as catalysts for another leg higher.
Also Read: Bitcoin Isn’t an Inflation Hedge but Benefits When the Dollar Falters
This month has been a reminder that while the upward momentum remains alive for Bitcoin, the path is far from smooth. Price action remains sensitive to policy, institutional flows, and market-structure dynamics.
Within the current trading range of roughly $105,000 to $126,000, a sustained move above the upper range would renew bullish momentum, whereas a drop below support could shift sentiment toward a deeper correction. The broader adoption trend remains intact, but caution is warranted given the still-elevated leverage and liquidity risks.
