What to Know

  • The crypto market capitalisation fell by a further 1.4% over the past 24 hours, even after a rebound from a sharper decline during US trading hours.
  • Market value dropped from $2.83T to $2.72T before recovering to $2.79T, suggesting buyers stepped in after a rapid selloff.
  • Bitcoin fell to $80.4K on Thursday, touching its lowest level in the past three weeks and testing its 50-day moving average.
  • Bitcoin also moved below $81K during the decline, which coincided with weakness in US stock indices.
  • Ethereum has remained in the $2.7K range since late September and slipped below its 50-day moving average this week.
  • Some technical traders are watching Friday’s close below $2.55K as a possible warning sign for Ethereum’s broader uptrend.
  • Basic Attention Token rose 9.8%, Cosmos gained 9.4%, and Immutable climbed 9.3%, while Algorand fell 8.7%, Near Protocol lost 7.8%, and Bitcoin Cash declined 6.3%.
  • Net outflows from US spot Bitcoin ETFs on 7 October exceeded $487 million, the highest level in nearly 3.5 months.
  • US spot Ethereum ETFs have recorded capital outflows for seven consecutive trading sessions.
  • Market participants are watching the $77K–$79K Bitcoin zone because a break below it could put 2.57 million BTC back in the red.

Crypto Recovery Looks Uneven After Sharp Selloff

The cryptocurrency market is attempting to stabilise after a volatile session that left traders debating whether the latest rebound is the start of a durable recovery or only a fragile relief move. Total crypto market capitalisation fell by a further 1.4% over the past 24 hours, but the headline number does not fully capture the speed of the intraday swings. During US trading hours, the market dropped from $2.83T to $2.72T, then recovered to $2.79T as buyers returned near the lows.

That bounce has helped ease immediate pressure, especially as a similar recovery effort appeared in equities toward the end of the week. Risk appetite has not disappeared, but it remains selective. Among major and mid-sized digital assets, declines still predominated, while a handful of tokens delivered strong gains. Basic Attention Token advanced 9.8%, Cosmos rose 9.4%, and Immutable gained 9.3%. On the weaker side, Algorand dropped 8.7%, Near Protocol declined 7.8%, and Bitcoin Cash fell 6.3%.

This mixed performance highlights a market that is no longer moving uniformly higher. Instead, investors appear to be discriminating more carefully between assets with strong near-term momentum and those vulnerable to technical breakdowns. For broader sentiment, however, Bitcoin and Ethereum remain the main reference points. Bitcoin’s rebound has encouraged some buyers, while Ethereum’s weaker chart structure is keeping caution high.

Bitcoin Defends Its 50-Day Moving Average

Bitcoin fell to $80.4K at the peak of Thursday’s decline, touching its lowest level in the past three weeks. The move also brought the largest cryptocurrency to its 50-day moving average, a level many technical traders use as a gauge of the medium-term trend. Buyers stepped in around that area, shifting the short-term balance away from sellers and giving Bitcoin room to recover from the lows.

The 50-day moving average has become especially important because it has helped define Bitcoin’s trend since July, when price action consolidated above it. The same average also acted as support in August. Thursday’s dip added another example of buying interest emerging during pullbacks, reinforcing the idea that some market participants continue to view declines toward the medium-term trend line as opportunities rather than reasons to exit.

Still, the recovery has not removed all risk. Bitcoin briefly traded below $81K on Thursday while US stock indices weakened. The Nasdaq 100 lost more than 1.2% following news that OpenAI’s annual revenue contracted and fell significantly short of expectations. Crypto remains sensitive to broader risk sentiment, particularly when growth-linked equities face selling pressure. If equity weakness returns, Bitcoin’s support test could become more demanding.

Ethereum Weakness Keeps Traders on Alert

Ethereum is sending a less constructive signal. The second-largest cryptocurrency has been stuck in the $2.7K range since late September and slipped below its 50-day moving average this week. For many market participants, Ethereum often functions as a sentiment gauge for the wider crypto complex. When Bitcoin is resilient but Ethereum breaks down, traders tend to question whether the broader market’s appetite for risk is weakening beneath the surface.

The key issue is whether Ethereum’s move below its 50-day average becomes a confirmed reversal signal or proves to be a false breakdown. Some chart watchers are waiting for Friday’s close below $2.55K before treating the move as a more serious threat to the uptrend. Until then, the breakdown remains a warning rather than a definitive change in trend.

Ethereum’s weakness also arrives as capital outflows from US spot Ethereum ETFs have continued for seven consecutive trading sessions. Persistent ETF outflows can influence sentiment because they suggest that institutional demand is not providing the same support traders might expect during volatile periods. While ETF flows are not the only driver of price action, they are closely monitored because they reflect a visible channel of regulated investment demand.

ETF Outflows Add Pressure to Market Confidence

US spot Bitcoin ETFs also remain under scrutiny. Net outflows from those products on 7 October exceeded $487 million, marking the highest level in nearly 3.5 months. Since the start of October, net outflows of $165.6 million have been recorded. These figures have weighed on confidence because spot ETFs had previously been viewed as a major source of structural demand for Bitcoin.

Outflows do not automatically imply a sustained bear move, but they reduce the cushion that strong institutional demand can provide during selloffs. When ETF flows weaken at the same time as macro-sensitive assets decline, traders often become more cautious. This can make technical support levels more important, because the market needs to see whether buyers are still willing to step in without strong ETF inflows.

For Bitcoin, one widely watched support area sits at $77K–$79K. As long as Bitcoin remains above that range, institutional investors are described as remaining in profit and selling pressure is seen as relatively low. If that level is lost, 2.57 million BTC could once again be in the red, analyst João Vedson has warned. That makes the zone a key psychological and technical reference point for traders monitoring downside risk.

Institutional Narratives Remain Divided

Despite the recent volatility, some prominent industry voices remain constructive on Bitcoin’s longer-term outlook. Hunter Horsley, CEO of Bitwise Asset Management, has said the protracted downturn in the crypto market has come to an end. In his view, Bitcoin can reach a new all-time high next year as interest grows from major investors and traditional financial firms.

That optimism sits alongside a more cautious near-term setup. The market has shown that buyers are willing to defend important Bitcoin levels, but Ethereum’s softer structure and ETF outflows are complicating the recovery narrative. For now, the rebound appears credible but not yet fully confirmed. A stronger signal would likely require Bitcoin to build on its defence of the 50-day moving average while Ethereum reclaims stability above key trend levels.

Institutional participation remains a central theme. Crypto markets have increasingly become intertwined with traditional finance through ETFs, corporate interest, and wallet integrations. This creates additional channels for demand, but it also means digital assets can react quickly when broader risk appetite weakens. The result is a market where bullish long-term adoption stories coexist with sharp short-term volatility.

Samsung Wallet Development Draws Attention

Another development drawing market attention is Samsung’s planned support for the USDC stablecoin in Samsung Wallet for 82 million Galaxy devices in the US. Its listed partners include the Solana and Sui blockchains, but not Ethereum. Analyst MartyParty has suggested that Samsung’s decision could spell the end for Ethereum, although the company has not officially announced that it is abandoning Ethereum.

The market reaction to such news can be intense because blockchain ecosystems compete for developer activity, stablecoin usage, and consumer-facing integrations. Even so, traders should separate confirmed business decisions from broader speculation. Samsung’s move may benefit selected networks involved in the rollout, but it does not by itself confirm a decisive shift away from Ethereum across the wider industry.

US authorities have also transferred cryptocurrency from their crypto wallets again, with the latest transfer totalling $470 million, according to Arkham. Government wallet movements often attract attention because traders watch for any sign that large holdings could enter circulation. However, transfers alone do not necessarily indicate immediate selling, so the market typically waits for more concrete evidence before drawing firm conclusions.

Outlook: Relief Rally or Trend Warning?

The immediate outlook depends on whether Bitcoin can continue to hold above its medium-term support area and whether Ethereum can avoid confirming a deeper trend reversal. Bitcoin’s rebound from the 50-day moving average is constructive, especially given that this level has acted as support before. But the wider market remains uneven, and ETF outflows are preventing traders from becoming overly confident.

Ethereum’s Friday close around $2.55K is one of the more closely watched technical markers. A confirmed close below that level would increase concern that the broader crypto uptrend is weakening. If Ethereum stabilises instead, the market may treat the latest breakdown as false and shift attention back to Bitcoin’s resilience.

For now, FXCOINZ views the crypto market as being in a testing phase. Buyers have defended important levels, but the recovery still needs confirmation. ETF flows, equity market sentiment, and the behaviour of Bitcoin around $77K–$79K will likely shape whether the rebound develops into a stronger advance or fades into another round of selling pressure.

Frequently Asked Questions (FAQs)

Why did the crypto market rebound after falling sharply?

The rebound came after the market dropped quickly from $2.83T to $2.72T and then recovered to $2.79T. Buyers appeared near the lows, while a similar bounce attempt in equities helped support risk appetite.

What level did Bitcoin reach during the decline?

Bitcoin fell to $80.4K on Thursday, touching its lowest level in the past three weeks. It also moved below $81K during the session as broader risk assets weakened.

Why is Bitcoin’s 50-day moving average important?

Many technical traders view the 50-day moving average as a medium-term trend indicator. Bitcoin has respected this level since consolidating above it in July, and it also acted as support in August.

Why is Ethereum causing concern?

Ethereum has been stuck in the $2.7K range since late September and slipped below its 50-day moving average this week. Some traders see a Friday close below $2.55K as a possible warning that the uptrend is under threat.

How are ETF flows affecting crypto sentiment?

Net outflows from US spot Bitcoin ETFs on 7 October exceeded $487 million, the highest level in nearly 3.5 months. US spot Ethereum ETFs have also seen outflows for seven consecutive trading sessions, adding caution to the market.

What is the key Bitcoin support zone to watch?

Market participants are watching $77K–$79K. If Bitcoin stays above that range, institutional investors are seen as remaining in profit, while a break below it could put 2.57 million BTC back in the red.

Which tokens performed best during the mixed session?

Basic Attention Token gained 9.8%, Cosmos rose 9.4%, and Immutable climbed 9.3%. Their gains stood out because declines were more common across the wider crypto market.

Which tokens were among the weakest performers?

Algorand fell 8.7%, Near Protocol lost 7.8%, and Bitcoin Cash declined 6.3%. Their weakness underscored the uneven nature of the market rebound.

What does Samsung’s USDC wallet support mean for Ethereum?

Samsung is set to add USDC support to Samsung Wallet for 82 million Galaxy devices in the US, with Solana and Sui listed as partners rather than Ethereum. Some observers view that as negative for Ethereum, but Samsung has not officially announced that it is abandoning Ethereum.