Bitcoin slid back down to around $121,525 after touching a crazy high above $126,000 earlier this week. The drop is pretty straightforward – people are cashing out their profits after the insane rally, plus everyone’s getting jittery about what’s happening with the US economy and that endless government shutdown.
Even with this pullback, Bitcoin’s still sitting on a decent 6.4% gain for October. That’s actually not bad when you consider October tends to be good for crypto historically. Last year saw an 11% October bump before things really went nuts with a 37% November surge when Trump won the election.
What’s causing the current weakness is pretty simple. Traders are banking their profits, and there’s legitimate concern about whether companies holding Bitcoin in their treasuries is actually a smart long-term play. The government shutdown keeps grinding on with no end in sight, and nobody knows what the Fed is going to do with interest rates next, which is keeping a cap on any potential upside.
Ethereum got hit harder than Bitcoin, losing 1.4% to land at $4,365. Solana dropped 2%, while Binance Coin tumbled 2.7% after setting records earlier in the week. XRP didn’t move much, hanging around $2.82. Dogecoin managed to squeeze out a 1.5% gain, though Trump’s meme token lost 2.3%.
In a weird twist, the UK’s biggest retail investment platform, Hargreaves Lansdown, told clients Bitcoin has zero intrinsic value literally right after Britain lifted its crypto ban.
Conclusion
Bitcoin dropped to $121,525 from its $126,000 record high as profit-taking and US economic uncertainty, including the government shutdown, dampened investor sentiment across crypto markets.
Also Read: Bitcoin Sees Inflow
