Bitcoin regained some lost ground on Wednesday, surging close to $124,000 after Tuesday’s sharp drop to $120,000. As of 9:30 a.m. on 9 October, BTC is trading at $122,050. ETH, XRP, and SOL recorded modest gains.
To recap, BTC cooled off after an aggressive run to new highs earlier in the week. After briefly crossing the $126,000 mark, BTC slid to around $122,500, as profit-taking and signs of market exhaustion emerged. The retracement marks a short-term breather following one of the strongest weekly performances of the year, driven primarily by institutional ETF inflows and growing macroeconomic uncertainty.
Market dynamics and institutional flows
Bitcoin’s pullback came just after crypto ETFs recorded record-breaking inflows of $5.95 billion globally, with $3.55 billion going into Bitcoin ETFs alone. This surge in capital was largely driven by institutional players seeking regulated exposure to digital assets amid a weakening dollar and mounting concerns over the US budget deficit and prolonged government shutdown.
Among altcoins, APTOS (APT), Aster (ASTER), and Story (IP) saw declines over the last 24 hours.
Macro and sentiment shifts
Investor sentiment remains risk-averse amid concerns over US fiscal instability. Gold and Bitcoin have both benefited from safe-haven demand. However, on-chain data is showing early signs of divergence; transaction volumes and active addresses have stagnated even as prices have surged, raising red flags about sustainability.
Technical setup and outlook
From a technical perspective, key support now lies between $118,000 and $122,000. Holding this range would maintain the bullish structure, while a breakdown could trigger a deeper correction. On the upside, resistance at $126,000–$127,000 must be cleared decisively for BTC to target the $130K–$140K range.
Some analysts remain optimistic, pointing out that Bitcoin often consolidates after strong rallies before continuing higher. The fourth quarter historically favors crypto, and if ETF momentum continues, some bullish forecasts even put $150,000 within reach this cycle.
Risks and watchpoints
Despite the upside potential, risks remain. Overbought technical conditions, weakening on-chain activity, and any slowdown in ETF flows could stall the rally. Additionally, altcoins may remain under pressure, especially those facing unlocks like Optimism (OP) and Aptos (APT), which could weigh on overall market sentiment.
Market outlook
Bitcoin’s retreat appears more like a healthy cooldown than a reversal. Institutional interest remains strong, macro tailwinds persist, and technical momentum, while stretched, hasn’t fully broken down. However, the coming days are critical. If BTC reclaims the $ 126,000 level with strong volume, the next leg higher could unfold quickly. For now, the crypto market is cautiously optimistic, but fully aware that volatility remains just around the corner.
Top gainers
Date: 09 Oct. 2025, 9:52 a.m.
Top losers
Date: 09 Oct. 2025, 9:52 a.m.
