Cryptos Plunge as Bitcoin Drops for Fourth Straight Day, Threatening $80,000 Support

TradingKey - Cryptocurrencies face collective downward pressure as Bitcoin pulls back for four consecutive sessions, fully igniting the battle to defend the $80,000 mark.

On October 9, Beijing time, the crypto market weakened again, with total market capitalization falling below $2.8 trillion, hitting a new one-month low. Meanwhile, major cryptocurrencies tumbled across the board, generally dropping 3%-5% over 24 hours. Among them, Bitcoin (BTC) once approached the $80,000 mark, Ethereum (ETH) fell to near $2,400, Binance Coin (BNB) dropped to a low of $720, and Ripple (XRP) fell to $1.3.

The most direct catalyst for the consecutive drops in cryptocurrencies is the rebound in U.S. Treasury yields and macro risk aversion. The short-term strengthening of U.S. Treasury yields and the U.S. Dollar Index has put high-risk assets such as tech stocks and cryptocurrencies under widespread capital outflow pressure, with spot ETF inflow momentum slowing or even turning into net outflows. Over the past four trading days, U.S. spot crypto ETFs have recorded net outflows that continue to expand.

U.S. Spot Crypto ETF Capital Flows, Source: CoinGlass

In addition, U.S. government-related wallets recently transferred tens of thousands of seized Bitcoins to Coinbase Prime custody addresses. Although this move primarily constitutes routine asset consolidation rather than an open-market sell-off, the news spread across communities, triggering panic selling pressure from retail investors and short-term capital.