Bitcoin Rebounds After Rough Week, But Traders Are Pricing In More Downside

In brief

• Bitcoin rebounded 1.38% to $82,837 on Friday after dipping to $80,427 on Thursday, while total crypto market cap rose 2% to $2.8 trillion and the Fear & Greed Index fell to a neutral 56.
• Bitcoin ETFs shed $484.9 million on Wednesday and $244 million on Thursday as the 10-year Treasury yield hit 5.32%, and Fed minutes point to another hike by year-end.
• Myriad traders give a 67% chance Bitcoin trades at or below $80,000 before October ends.

The crypto markets are breathing today, with the total capitalization up 2.1% to $2.89 trillion on Friday. The bounce recovers only part of the damage, since the market stood above $3 trillion a week ago, when Bitcoin was pressing against its yearly high.

Despite the recovery, traders are still nervous. The Fear & Greed Index dropped to 56, a neutral reading, down from the 71 that put sentiment firmly in “greed” territory on October 2.

Wall Street is also nervous. Bitcoin ETFs alone shed $484.9 million on Wednesday, their worst day since June 25, and a further $244 million on Thursday, according to Decrypt's ETF tracker.

Bitcoin trades around $82,837 on Friday, up 1.38% on the day, after dipping to $80,427 on Thursday, its lowest level since early September.