Bitcoin Falls 8% in Two Days as Profit-Taking, Dollar Strength Weigh

Bitcoin fell to the $80,000 level as profit-taking and a stronger dollar weighed on the token. Outflows from spot exchange-traded funds and forced liquidations of leveraged positions also deepened the slide.

On October 8, Bitcoin fell as low as $80,395 intraday on Binance's Tether market. That marked a drop of about 8% from roughly $86,698 on October 6. Bitcoin was recently trading around $81,700.

Selling by traders looking to lock in gains after the recent rally added pressure. Forbes cited CryptoQuant Head of Research Julio Moreno as saying traders' on-chain unrealized profit margin reached 33% last week, the highest since December 2024. Over the same period, Bitcoin holders realized gains worth 25,700 Bitcoin, the largest amount this year.

The macro backdrop also weighed on sentiment. Leah Thompson, marketing manager at Cake Wallet, said rising U.S. Treasury yields and a stronger dollar were pressuring financial markets broadly. As Treasuries become more attractive, some investors are pulling back from risk assets such as Bitcoin.

ETF outflows and forced liquidations compounded the selling pressure. John Haar, vice president of sales at Blockware, said Bitcoin's decline coincided with a broader retreat from risk assets across markets. The unwinding of leveraged positions that had bet on further gains turned the initial selloff into a steeper drop.

Still, some market participants said the short-term pullback does not undermine the long-term investment case. Haar said Bitcoin adoption is continuing as money supply expands and government debt rises. Vik Sharma, chief executive officer of Cake Wallet, said Bitcoin's long-term appeal lies in its limited supply and in investors' ability to hold the asset directly. Short-term price swings driven by fund flows should be viewed separately from the reasons for holding Bitcoin over the long run.