Bitcoin Falls 15% as Fed Comments and US Shutdown Shake Risk Appetite
Bitcoin is back under pressure after Fed Chair Jerome Powell’s hawkish remarks and the US government shutdown spooked markets. Despite $3.55 billion in ETF inflows in early October, BTC has dropped around 15% from its record high, testing key support near $103,600 in mid-October as traders weigh macro risks.
Bitcoin back under pressure
Bitcoin has remained in focus as fresh institutional flows and macro-events converge to shape its near-term outlook.
Whereas Bitcoin exchange-traded funds (ETFs) welcomed $3.55 billion in global inflows in the week ending 4 October - the biggest single-week influx to date – it suffered along with other cryptocurrencies following the Federal Reserve (Fed) Chair Jerome Powell’s recent hawkish comments and the ongoing US government shutdown which rattle risk assets generally.
Bitcoin dropped by around 15% from its early October $126,219.03 record high to around the current $107,550.00 region.
Despite the recent dip, derivatives data show that funding rates on the exchange Binance remain persistently positive, signalling that many traders are still leaning long.
What these developments amount to is a tug-of-war between bullish structural narratives and immediate risk factors. On one hand, the magnitude of institutional inflows bolsters the idea that Bitcoin is becoming a mainstream portfolio asset. On the other hand, macro headwinds and technical pullbacks reveal how quickly sentiment can shift in the crypto markets.
In the coming days, attention will be on whether Bitcoin can hold above key support at its mid-October low at $103,604.99 and resume its advance towards new highs, or whether further profit-taking and external shocks will pressure the asset back to the psychological $100,000.00 mark.
Bitcoin daily candlestick chart
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