Bitcoin is clearly not in a good mood this Friday. Its current decline could derail the three-week uptrend we’ve been watching so closely. The main reasons for this market sluggishness lie in economic instability and rising bond yields, which are noticeably dampening investor enthusiasm.
By 9 a.m. Moscow time, the world’s leading cryptocurrency had fallen 0.6%, settling at $82,428. If this trend continues, we’ll see a drop of nearly 2.8% by the end of the week.
The crypto market as a whole is also underperforming today. Moreover, altcoins are faring much worse than Bitcoin. It appears that after a strong third quarter, major players decided in early October to simply lock in their profits and cash out.
Even support from Strategy Inc. and a more favorable stance from U.S. regulators were unable to keep Bitcoin afloat this week.
Why Is Bitcoin Under Pressure? The Impact of Bonds and Outflows from ETFs
Bitcoin has been falling all week. When bond yields rise, risky speculative instruments like cryptocurrencies become less attractive. Risk appetite is currently focused primarily on tech stocks related to artificial intelligence, which has allowed Wall Street to hit new highs.
Cryptocurrencies, on the other hand, are losing ground as the market anticipates another interest rate hike from the Fed. Inflation remains stable, so the likelihood of another hike by the end of the year seems quite realistic.
In addition, September’s strong performance triggered a wave of profit-taking. Now everyone is wondering whether October will see a repeat of the seasonal growth typical for cryptocurrencies.
Another concerning development is that money has begun to flow out of spot Bitcoin ETFs. According to SoSoValue, outflows from these funds exceeded $700 million over the course of the week, marking the first such occurrence in a month.
Rising oil prices also played a significant role. Although the oil market saw a relative lull on Friday after Donald Trump stated that no new attacks on Iran are planned before the November election.
What’s happening with altcoins?
Today, the market is seeing a general decline, but altcoins are clearly lagging behind Bitcoin in this race to the bottom.
Ether, which ranks second by market capitalization, fell 2.7% to $2,498, and its weekly losses have already exceeded 7%.
XRP slipped 0.5%, losing nearly 6% over the week, while BNB fell 3.4%, bringing its weekly total to a 5.6% decline.
Solana and Cardano are also underperforming: their prices fell by 5.4% and 3.4%, respectively.
In the world of meme coins, the situation is mixed. Dogecoin fell by 2.6%, while the TRUMP token managed to post a slight gain of 0.3%.