The cryptocurrency market experienced a significant pullback recently, with Bitcoin (BTC) retracing from its previous all-time high. As of this morning, BTC is priced at $122,674, reflecting a 1.8% drop in a single day and approximately 3% below its recent peak of over $126,000. This decline is contributing to a larger downtrend in the cryptocurrency landscape, pushing the total market capitalization below the $4.3 trillion mark.
Despite this short-term decrease, Bitcoin has managed to rise over 4% throughout October, a month known for positive price movements historically, noted Iliya Kalchev, a dispatch analyst at Nexo. He emphasized the ongoing influx of institutional investments, stating, “ETF inflows continue to anchor the move: on Tuesday alone, spot Bitcoin ETFs attracted $875 million, extending total inflows to over $60 billion since launch.” This sustained interest from institutional investors may offset some of the current volatility.
Among the top-20 cryptocurrencies, Ethereum (ETH) recorded one of the largest declines of the day, falling over 2% to a price of $4,455. Whereas Bitcoin and ETH faced setbacks, some tokens within the top-10 experienced varied fortunes. BNB, for instance, defied the trend with a 1.5% increase, maintaining its rally and achieving a new all-time high above $1,330 just yesterday.
Other prominent assets also felt the pressure. XRP is down approximately 1.2%, trading at $2.87. Analysts at Santiment highlighted that the token is experiencing its “highest level of retail fear, uncertainty, and doubt (FUD) since Trump’s tariffs announcement six months ago.” Additionally, Solana (SOL) declined by 0.9% to $222, while TRON slipped 1.4% over the past day.
Despite the overall market downturn, some cryptocurrencies experienced notable surges. Zcash (ZEC) and Mantle (MNT) were among the biggest winners in the top-100, with ZEC soaring over 20% today, continuing a trend of increasing interest in privacy-focused tokens. Meanwhile, MNT rose nearly 10%, hitting a new all-time high this morning after the launch of the Mantle-powered crypto application, UR. In contrast, pumpfun’s PUMP and Plasma’s XPL are seeing the most significant losses, each down over 7%.
According to data from Glassnode, even amid the current market constraints, Bitcoin remains in a strong position, with over 95% of its circulating supply still showing profitability. They highlighted that “this is a hallmark of euphoria phases, where general profitability can lead to accelerated profit-taking and increased market risk.”
In terms of liquidations, the previous 24 hours saw over $624 million in leveraged positions wiped out, with Ethereum leading the liquidations at over $170 million, followed closely by Bitcoin at $153 million and various altcoins totaling more than $67 million.
On a brighter note, significant inflows were recorded in the ETF sector, with spot Ethereum ETFs attracting over $420.8 million and Bitcoin ETFs pulling in over $875.61 million in net inflows. These figures indicate continued strong interest from investors, despite the recent price fluctuations.
As the market adjusts, attention is turning toward macroeconomic indicators, particularly the upcoming release of the University of Michigan’s preliminary October consumer sentiment and one-year inflation expectations on October 10. These insights will provide valuable context for the current economic climate as investors navigate their strategies in a volatile market environment.
