đ° Bitcoin Price Pullback Tests Market Nerves
Bitcoin (BTC) and Ethereum (ETH) faced renewed turbulence this week as market volatility returned with force. After climbing near $126,000, Bitcoin tumbled roughly 5.5%, briefly dipping below $114,500 before stabilizing. Ethereum mirrored the movement, dropping over 6% to hover around $3,300. Market strategists describe the pullback as a healthy consolidation phase following weeks of aggressive gains, signaling that traders are taking profits while reassessing risk exposure.
đ Derivatives Expiry Fuels Short-Term Pressure
Fresh data from major derivatives exchanges shows over $4 billion in BTC and ETH options expired on Friday, amplifying intraday volatility. Traders repositioned around Bitcoinâs âmax painâ level of $115,000, triggering large-scale liquidations on leveraged accounts. Despite the short-term turbulence, institutional demand remains robust. Crypto exchange-traded funds (ETFs) recorded inflows exceeding $5.9 billion globally in early October, underlining investor confidence in digital assets amid macro uncertainty.
đ Macro Uncertainty Adds to Crypto Headwinds
The pullback coincided with broader global caution as persistent U.S. inflation data, high bond yields, and geopolitical tensions rattled risk sentiment. On-chain analytics revealed lower Ethereum gas fees and declining staking yields, suggesting that blockchain activity has cooled temporarily. However, analysts view the correction as a technical reset, not a bearish reversalâindicating potential upside once macro pressures stabilize.
đź Outlook: Consolidation Before the Next Leg Higher
Market analysts anticipate Bitcoin consolidating between $120,000â$126,000, with support around $112,000. Ethereumâs pattern is expected to track Bitcoinâs, supported by growing institutional participation and expanding on-chain liquidity. Some experts forecast that Bitcoin could target $165,000 by year-end if momentum resumes, supported by ETF inflows and investor accumulation trends.
đ Top 3 Key Takeaways â Bitcoin & Ethereum Market Volatility
- đ„ Short-Term Correction After Record Gains: Bitcoin and Ethereum dropped sharply this week â BTC fell below $114,500, while ETH declined over 6%. Experts see this as a natural correction following rapid rallies.
- ⥠Derivatives Expiry Drives Volatility: More than $4 billion in BTC and ETH options expired, intensifying price swings and forcing traders to adjust leveraged positions.
- đŠ Institutional Confidence Persists: Despite market dips, crypto ETF inflows topped $5.9 billion, confirming sustained long-term investor confidence in digital assets.
Disclaimer:
This article is for informational purposes only and does not constitute financial or investment advice.
Source: Digital News & Investigative Reports (DNIR) â cnirbc.com
