Bitcoin Dips Below $121K as Gold and Silver Take a Breather: Market Turmoil Explained (October 2025)

• Why Did Bitcoin Plunge Below $121,000?
• Silver’s Record High—And Violent Correction
• Bitcoin as Collateral Damage
• Altcoins Bleed, Bitcoin Dominance Soars
• What’s Next for Crypto and Metals?
• Your Bitcoin Crash Questions, Answered

Bitcoin’s sharp drop below $121,000 on October 10, 2025, mirrors a broader market correction, with Leveraged liquidations exceeding $600 million. Precious metals like silver (peaking at $50/oz) and gold ($4,100/oz) triggered profit-taking, dragging BTC down despite its recent all-time high near $124K. Altcoins bled harder, boosting Bitcoin’s dominance to 59.4%. Here’s why traders are flocking back to BTC’s "safe haven" status amid political uncertainty and stalled U.S. economic data.

Why Did Bitcoin Plunge Below $121,000?

On October 10, bitcoin tumbled from $124,000 to under $121,000 in under two hours—a move tied to cascading liquidations ($600M+) and a synchronized sell-off in precious metals. "This wasn’t a crypto-specific event," notes the BTCC research team. "Gold and silver’s profit-taking wave hit risk assets globally." Data from TradingView shows BTC’s 90-day correlation with gold spiked to 0.7 in September, its highest since 2023.

Silver’s Record High—And Violent Correction

Silver stole the spotlight, briefly hitting $50/oz (a historic first) before crashing to $48.55. "The market was overheated," admits Daniela Hathorn of Capital.com. April’s 50% rally left traders itchy to cash out. Gold followed suit, dipping 1% to $4,035 after testing $4,100. Weak dollar trends and U.S. political gridlock had fueled their rise—until reality bit.

Bitcoin as Collateral Damage

BTC, flirting with its own ATH, got caught in the crossfire. By afternoon trading on BTCC, it wobbled near $121K, erasing weekly gains. The pullback aligns with a "risk-off" mood as delayed U.S. economic reports (thanks to a government slowdown) left investors blind. "Crypto mirrors traditional markets now," says a BTCC analyst. "When metals sneeze, Bitcoin catches a cold."

Altcoins Bleed, Bitcoin Dominance Soars

Altcoins fared worse: ethereum dropped 5%, while BNB and Dogecoin slid 3-4%. The exodus pushed Bitcoin’s market share to 59.4%—a two-month high. "No ‘alt season’ in sight," quips a trader on X. "It’s a BTC safety trade." CoinGlass data reveals derivatives traders got wrecked, with $600M in positions wiped. Yet long-term holders seem unfazed; BTC’s illiquid supply hit a record 15.2M coins this week.

What’s Next for Crypto and Metals?

Historically, October’s volatility precedes Q4 rallies. With real yields still negative and gold holding NEAR peaks, Bitcoin’s dip might be a blip. But watch the dollar: if Treasury resumes data flows, expect fireworks. As for silver? "$50 is psychological resistance," says Hathorn. "Break that, and we’re in uncharted territory."