The cryptocurrency market saw a minor decline on Thursday, as leading tokens Bitcoin and Ethereum pulled back from their recent record highs amid profit-taking and a prevailing sense of risk aversion in global markets. Analysts observed that the recent decline in Bitcoin and Ethereum appears to be a temporary adjustment within a broader positive trend. Bitcoin hit a peak of $126,198 on October 7, but has since seen a minor decline. As of the latest update, the leading cryptocurrency was priced at $121,077, reflecting a decrease of 0.68 percent in the last 24 hours. The digital asset varied between $119,812 and $123,739, demonstrating ongoing buying interest amid minor pullbacks. Daily trading volumes surged to $75.74 billion, with Bitcoin’s market capitalisation remaining strong at $2.41 trillion, underscoring its dominance in the digital asset space.
Ethereum, the second-largest cryptocurrency by market capitalization, has also dipped below the $4,400 mark. ETH recently traded at $4,326, showing a decrease of 2.45 percent, with a 24-hour trading volume of $46.47 billion. The token showed fluctuations, moving between $4,273 and $4,437 during that period. Ryan Lee, mentioned that the current weakness in the crypto market is “more of a short-term correction than the beginning of a wider reversal.” Lee stated “The recent surge in prices had stretched positioning, creating an opportunity for a technical adjustment. Liquidations surged as Bitcoin fell below $122,000, causing more than $688 million in leveraged long positions to be unwound in the last 24 hours.” The sudden pressure caused ripples across significant altcoins. Lee observed that broader economic elements have contributed to the present short-term hesitance. “Increasing Treasury yields and aggressive US data have brought new uncertainty to risk assets. He pointed out that delays related to ETFs and uncertainty in Washington are impacting sentiment.”
Regardless, Lee upheld a positive medium-term perspective and remarked, “We see this stage as a beneficial consolidation.” Institutional flows remain strong, exchange balances are decreasing, and on-chain activity shows continued demand. That being said, fluctuations may continue, and not maintaining crucial supports could further challenge sentiment. From a technical perspective, Riya Sehgal observed that Bitcoin has been creating lower highs since October 6, establishing an important decision zone between $120,000 and $120,800. “A consistent drop below this range may lead to profit-taking reaching $118,500.” Conversely, reclaiming $122,500 might ignite fresh upward movement towards the $124,500–$126,000 range,” she noted. Sehgal pointed out that Ethereum’s ongoing consolidation mirrors the pattern observed in Bitcoin. “ETH is holding steady within a short-term base that aligns with Fundstrat’s expected support area. Provided that buyers maintain their position in this area, the potential for decline seems constrained and the overall trend continues to be positive,” she added.
The broader altcoin market showed a mixed trend. Zcash has emerged as the standout performer, rallying nearly 31 percent. Among the standout performers were Litecoin, Bittensor, Starknet, Ethereum Classic, Uniswap, NEAR Protocol, Filecoin, Curve DAO, Bitcoin Cash, Chainlink, Algorand, Optimism, and Gala—each experiencing gains of up to 9 percent. Conversely, data indicates that Mantle, DoubleZero, Artificial Superintelligence Alliance, PancakeSwap, Story, OKB, Bonk, BNB, Ethena, Solana, and several others experienced declines ranging from 5 to 17 percent. Market analysts generally agree that the recent downturn indicates consolidation rather than capitulation. On-chain data indicates a consistent pattern of accumulation during downturns, with institutional inflows remaining stable as market participants expect possible rate reductions from the US Federal Reserve in the upcoming quarter. “Even with short-term fluctuations, the underlying environment for crypto assets continues to be favorable,” analysts noted. “Engagement from long-term holders and a decrease in exchange availability indicate ongoing investor trust.”