On October 17, the cryptocurrency market faced renewed pressure, with Bitcoin (BTC-PKR[1]) sliding toward $105,000 and Ethereum (ETH-PKR[2]) falling beneath the $4,000 mark. The declines, which spread across the broader altcoin market, were triggered by a mix of political developments, a surprising stablecoin minting error, and persistent technical resistance that undermined investor confidence.
The downward momentum was not only the product of technical trading patterns but also fueled by external shocks. Political scrutiny intensified after a high-profile fundraising event hosted by President Trump, which brought crypto CEOs into the spotlight and revived debates about the industry’s political involvement.
Trump’s renewed rhetoric on U.S.-China trade disputes further spooked global risk markets, contributing to a broader risk-off sentiment that spilled over into crypto. At the same time, Paxos, the issuer of PayPal’s PYUSD stablecoin, accidentally minted an astronomical $300 trillion worth of tokens due to an internal technical error. Although the team swiftly corrected the mistake, the glitch rattled confidence in stablecoin oversight and exposed operational risks within regulated digital asset firms.
Against this backdrop, Bitcoin’s technical struggles became more apparent. After failing to break resistance near $113,000, Bitcoin triggered a cascade of selling that pushed it through multiple support levels, briefly touching a local low around $107,483 before settling just under $107,000. Analysts now point to $110,500 as the immediate resistance, while warning of further downside if the asset slips decisively below $105,000.
Ethereum mirrored Bitcoin’s weakness, dropping under the key $4,000 psychological level after losing its footing above $4,020. It tested lows near $3,783; ETF outflows from Ethereum added to the bearish tone, signaling that institutional appetite is waning alongside retail enthusiasm.
The broader implications are equally sobering. The Paxos stablecoin error has injected fresh uncertainty into a market already sensitive to operational and regulatory risks, while political scrutiny has made investors more cautious about long-term exposure. Together, these developments suggest a flight to safety, with capital increasingly rotating away from high-beta assets and toward more stable havens.
Looking ahead, the market’s trajectory will hinge on whether Bitcoin and Ethereum can reclaim their respective resistance levels of $110,500 and $4,070. Investor sentiment will also be shaped by how quickly confidence in stablecoins can be restored after the Paxos mishap, and by any fresh regulatory signals emerging from the United States. Meanwhile, escalating U.S.-China trade tensions remain a looming risk, with the potential to spark further volatility across global financial markets.
For now, the crypto market remains on edge, caught between internal technical weaknesses and external macro pressures, leaving traders to navigate one of the most uncertain environments in months.