Summary
- Bitcoin fell to the $80,000 level on profit-taking, a stronger dollar, spot ETF outflows, and forced liquidations of leveraged positions.
- Market-wide risk aversion, rising U.S. Treasury yields, and the growing appeal of Treasury investments are encouraging some investors to pull back from Bitcoin.
- Some analysts, however, said the long-term case for Bitcoin remains intact, citing continued Bitcoin adoption amid money supply growth and rising government debt, as well as its capped supply and ability to be self-custodied.
Forecast Trend Report by Period
Bitcoin fell to the $80,000 level as profit-taking and a stronger dollar weighed on the token. Outflows from spot exchange-traded funds and forced liquidations of leveraged positions also deepened the decline.
On Oct. 8, Bitcoin fell as low as $80,395 on Binance's Tether market. That marked a drop of about 8% in two days from roughly $86,698 on Oct. 6. Bitcoin was recently trading around $81,700.
Selling by investors looking to lock in gains from the recent rally pressured prices. Forbes cited Julio Moreno, head of research at CryptoQuant, as saying traders' on-chain unrealized profit margin reached 33% last week, the highest since December 2024. Over the same period, Bitcoin holders realized gains worth 25,700 Bitcoin, the largest amount this year.
The macro backdrop also added pressure. Leah Thompson, marketing manager at Cake Wallet, said rising U.S. Treasury yields and a stronger dollar were weighing on financial markets broadly. As Treasuries become more attractive, some investors are pulling back from risk assets such as Bitcoin.
Selling pressure intensified as ETF outflows coincided with forced liquidations. John Haar, vice president of sales at Blockware, said Bitcoin's decline aligned with a broader move away from risk assets across markets. Liquidation of leveraged positions that had bet on further gains turned the initial selling into a steeper drop.
Still, some market participants say the short-term pullback does not undermine the long-term investment case. Haar said Bitcoin adoption is continuing as money supply expands and government debt rises. Vik Sharma, chief executive officer of Cake Wallet, said Bitcoin's long-term strengths lie in its capped supply and the ability to hold the asset directly. Short-term price swings driven by fund flows should be viewed separately from the long-term reasons for owning Bitcoin.
