According to Woofun AI, the crypto market was under pressure from multiple macro variables, and the Bitcoin (BTC) price once fell below $80,000, hitting a new low of more than a month. This trend is not an isolated phenomenon; it is the result of declining funding and resonance with external uncertainty. There were still inflows from US spot Bitcoin ETFs in the first half of last week, but on Thursday and Friday, they quickly switched to centralized divestment. Although net inflows of about US$301 million were recorded throughout the week, the market heat cooled down significantly; the performance of Ethereum (ETH) spot ETFs was even weaker, with net outflows of US$221 million for the whole week.
According to data compiled by Woofun AI, leveraged liquidation increased market fluctuations. The net contract settlement scale reached about US$436 million in four hours on Saturday alone, and the liquidation of multiple orders reached US$689 million within 24 hours. The underlying reason is the repeated concerns about energy prices and inflation caused by the situation in the Middle East. If oil supply is disrupted, it will further strengthen the Federal Reserve's austerity trend. The Federal Reserve's interest rate meeting became the focus this week. The market generally expects interest rates to remain unchanged, but if the Federal Reserve emphasizes the risk of inflation, especially the effect of energy prices on prices, interest rate hikes will heat up further, and the market is already tending to raise interest rates again in December.
Meanwhile, the Nasdaq index has been falling for two consecutive weeks. Uncertainty about the return on AI investment has made investors cautious, and weakening US stocks may drag down crypto assets. In contrast, although there is a partial cease-fire and a humanitarian agreement on the Russian-Ukrainian situation, it is far from over, and there are still variables as to whether the US will turn to promote the Russian-Ukrainian issue due to the impasse in Middle East negotiations.
Bitcoin has been falling for four consecutive trading days. October to date may have recorded its first monthly decline since June, and the price is running close to the lower end in the range of $80,000 to $87,000. Currently, the market is at the intersection of key variables, and a turning point does not necessarily mean an upward trend. Bitcoin will still face downward pressure if the Federal Reserve's hawkish attitude, geopolitical risk heats up, or ETF outflows continue. As the midterm elections approach and there is still room for the situation to evolve, it is too early to blindly judge the end of the market. It is more prudent to patiently observe the further clarity of policies and geographical signals.