Bitcoin It slid below $107,000 in Friday’s Asian session, extending a slow drift lower as macro uncertainty and liquidity stress kept traders cautious in crypto markets.
“The rebound on Sunday and Monday did not develop, and the 50-day moving average acted as local resistance,” said Alex Kuptsikevich, FXPro Chief Market Analyst, in an email. “The market is retesting the strength of the 3-month support near current levels. Such persistence from the Bears suggests that the next phase will be a test of the 200-day average, which passes $3.5 trillion.”
“The market broke above this line in May; holding it at the end of July triggered strong buying,” Kuptsikvich said, giving clues on the levels to monitor.
The market’s recovery from last week’s shock appears to have emerged, with a bounce earlier in the week being reversed and the major tokens passing each day.
Ether Traded around $3,895, while BNB, Solana, and XRP fell between 5% and 7%—each regaining most of their post-crash bounce. and Cardano’s ADA is down more than 20% week-to-date amid a lack of enthusiastic speculation.
The tone in risk markets soured overnight as traders circled back to StableCoins, avoiding bitcoin and smaller tokens ahead of key federal reserve and geopolitical catalysts.
“Altcoins are under pressure as liquidity continues to cycle back to Bitcoin and StableCoins amid risk sentiment,” said Wenny C., the COO at synfutures, in a message to Coindesk, adding that thinner order books have fueled volatility across the secondary market.
Despite the red screens, analysts said the pullback looked more like a controlled deleveraging than a panic. Exchange Open Interest fell to midyear lows, and ETF inflows remained steady, suggesting long-term capital is sitting tight.
“This latest dip reflects the decline in speculative appetite after last week’s macro data,” Wenny said, noting that “nothing has changed structurally.”
Nassar Achkar, chief strategy officer at Coinw, said flushes actions tend to set up cleaner bases.
“Resilient ETF inflows and whale accumulation stabilize markets. The path to a sustained rebound depends on how quickly this underlying capital converts to fresh risk,” Achkar told Coindesk.
The focus now shifts to the Federal Reserve’s FOMC meeting, where traders will look for strong talk after chair Jerome Powell said last week that quantitative easing could end soon.
Futures indicate a 65% chance of a 25-basis-point cut, which would extend risk support by the end of the year if confirmed.
Outside of crypto, gold briefly hit a fresh record before retreating, while the yen boosted Haven bids after trade jitters between the US and China changed. The standoff injected volatility across commodities and equities, dragging Asian stocks to their lowest levels in two weeks.
However, some see opportunity in the chaos. Former Bitmex CEO Arthur Hayes called the drawdown a “buying window,” while K33 Research said reduced leverage leaves “room for spot BTC positions to rebuild.”
The current reset mirrors the previous cycle pause, where the seizure exploded before new capital could even be cycled. Whether that round comes before or after the Fed’s next signal will likely determine the rest of October.
