The decline in Bitcoin is just a facade, with Ethereum and most mainstream altcoins experiencing larger drops, indicating that this round of adjustment has spread from a single asset to a broader cryptocurrency market.
From October 5 to 11, the cryptocurrency market faced overall pressure. Bitcoin had a weekly drop of about 2.6%, Ethereum fell over 7%, Solana dropped about 8%, and XRP also showed a significant decline. During the same period, most of the cryptocurrencies ranked by market capitalization declined, causing the total market cap to decrease.
From the market performance perspective, Bitcoin has been relatively resilient, but the willingness of funds to allocate to risk assets has weakened, resulting in greater selling pressure on some altcoins.
BTC once dropped to around $80,400
This week, Bitcoin fluctuated repeatedly under the changing macro environment and market deleveraging pressure, with the price once dipping to around $80,400, before recovering to the $82,000 to $83,000 range.
This round of volatility shows that the market remains sensitive to short-term price changes. During the decline, the liquidation of leveraged positions could further amplify price fluctuations; while during price rebounds, short-term funds will also reassess whether prior sell-offs have been fully released.
However, a price rebound from a low point does not alone prove that the trend has reversed. Future observation is needed to see if spot buying persists, if trading volume can align, and whether prices can maintain relative stability after rebounding.
ETH and altcoins are under greater pressure
Compared to Bitcoin, Ethereum and some mainstream altcoins have seen larger drops. According to this week's statistics, Ethereum's decline exceeded 7%, Solana fell about 8%, and XRP also experienced a weekly correction.
This performance reflects a differentiation in market risk preferences. When overall funds tend to be cautious, investors often pay more attention to liquidity, position risk, and asset volatility, causing some high-volatility assets to face greater selling pressure.
According to relevant market statistics, most of the top 50 cryptocurrencies by market capitalization declined this week. The expansion of the market decline indicates that this week was not only Bitcoin that was affected, but the entire cryptocurrency sector underwent varying degrees of revaluation.
Macro factors remain important variables
This week's market pressure is also closely related to the macro environment. U.S. Treasury yields and the dollar's movement are under market focus, while energy supply concerns triggered by the Middle Eastern situation have pushed international oil prices higher, with Brent crude once rising above $100 per barrel.
Rising oil prices could exacerbate market concerns about inflation pressure and affect investors' judgments regarding future monetary policy. If inflation expectations rise again, market expectations for easing policies may be suppressed, leading high-volatility risk assets to face greater valuation pressures.
However, macro variables cannot directly determine the short-term trajectory of cryptocurrency assets. The flow of spot funds, changes in derivatives positions, and the market's own liquidity will also impact price performance.
What to focus on next?
After a week of adjustments, the market needs to observe three aspects: first, whether Bitcoin can maintain the price range after the rebound; second, whether Ethereum and major altcoins can narrow their relative declines; third, whether the flow of spot ETF funds can resume stability.
If Bitcoin rebounds but other assets continue to weaken, the internal risk preference of the market may still be low; if spot funds gradually return and mainstream assets begin to stabilize simultaneously, it would be more helpful in judging whether the market is forming a broader recovery trend.
This week's core change is not just how much BTC has dropped, but that the adjustment has spread to ETH and most mainstream altcoins. Going forward, whether price rebounds can receive support from spot funds will be more noteworthy than daily fluctuations.
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