Bitcoin Price Analysis: BTC Struggles To Regain Momentum As Downturn Continues
Bitcoin (BTC) is struggling to regain momentum, with the price down over 1% during the ongoing session, trading around $111,660. Investor sentiment remains rattled as worsening US-China trade ties have impacted risk appetite.
However, there is optimism despite current market events. Analysts remain confident that Friday’s crash is unlikely to have derailed “Uptober.” Meanwhile, veteran trader Peter Brandt believes the flagship cryptocurrency could see another slump before returning to all-time highs.
US Department of Justice Seizes $15B in Bitcoin (BTC)
The United States Department of Justice (DOJ) has seized $15 billion in Bitcoin (BTC) from a “pig butchering” network. Officials are calling the forfeiture the largest in US History. Federal prosecutors unsealed an indictment on Tuesday, charging Chen Zhi, a Chinese national who holds several passports. Zhi is the mastermind behind the Cambodia-based Price Group, one of the country’s largest conglomerates, with money laundering conspiracy and wire fraud conspiracy.
The Treasury Department also sanctioned several affiliates of the Prince Group and designated them as criminal organizations. The crackdown comes amid growing cases of the “pig butchering” scam, costing Americans millions. Authorities confirmed the seizure of 127,271 BTC, valued at $15 billion at current prices. Christopher Raia, assistant director in charge of the FBI’s New York field office, said it is one of the largest pig butchering scams they have investigated.
“The scams are rampant. The FBI is focusing on the biggest cases to try to stop the harm. It’s kind of like jaywalking. Authorities can’t arrest their way out of the problem. The FBI is focusing on the biggest cases to cut off the head of the snake.”
Bitcoin Treasury Companies On The Rise
An analysis by Bitwise has revealed that the number of public companies holding Bitcoin rose 38% between July and September, indicating that large players are still interested in the asset. According to Bitwise Asset Management’s Q3 Corporate Bitcoin Adoption report, 172 companies hold Bitcoin, including 48 that entered the digital asset space only this quarter. Bitwise CEO Hunter Horsley stated,
The report also found that the value of the total holdings held by these treasury companies has risen to $117 billion, up 28% quarter-over-quarter. Rachael Lucas, an analyst at Australian cryptocurrency exchange BTC Markets, stated that the accumulation figures suggest large corporations are doubling down, not backing away from Bitcoin.
“As more corporations and even sovereigns step in, we expect this momentum to continue, especially as regulatory clarity improves and the infrastructure supporting institutional crypto adoption matures.”
Lucas believes that institutional adoption is increasing because they have made an informed decision on holding digital assets as part of their treasury.
“They're not just chasing short-term gains; they’re making a long-term decision on digital assets as part of their treasury strategy. This participation helps legitimize crypto as a mainstream asset class and lays the foundation for broader financial innovation, from Bitcoin-backed loans to new derivatives markets.”
Spot Bitcoin ETFs Rebound As Fed Chair Indicates Rate Cuts
US spot Bitcoin and Ethereum ETFs registered inflows on Tuesday as Federal Reserve Chair Jerome Powell hinted at more rate cuts before the end of the year. Spot Bitcoin ETFs registered $102 million in net inflows, recovering from an outflow of $326 million the day prior. Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) led the inflows with $132 million, while BlackRock’s IBIT registered modest outflows of $30 million. Total net assets across Bitcoin ETFs climbed to $153.55 billion, 6.82% of Bitcoin’s market cap, while cumulative inflows were at $62.55 billion.
Meanwhile, Federal Reserve Chair Jerome Powell hinted that the central bank is nearing the end of its balance sheet reduction program and preparing for a potential rate cut. Speaking at the National Association for Business Economics conference, Powell stated that the Fed will soon stop its quantitative tightening process, and noted that reserves are “somewhere above the level” consistent with ample liquidity.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) continued to trade in the red for a second day as it struggled to regain momentum. The flagship cryptocurrency started the week with a marginal increase and settled at $115,274. However, selling pressure returned on Tuesday as the price fell to an intraday low of $109,945 before settling at $113,068, ultimately dropping 1.91%. BTC is down over 1% during the ongoing session, trading around $111,654.
President Trump has intensified trade tensions with China after threatening to ban the import of cooking oil from Beijing in response to the latter’s ongoing boycott of US soybeans. President Trump’s latest threat came after weeks of tariffs, threats, and countermeasures had escalated concerns about a full-blown trade war between the US and China. The latest salvo unsettled already jittery markets, with stocks, commodities, and cryptocurrencies registering sharp drops. As a result, the Nasdaq fell 3.5% as investors turned to safer assets like gold and US Treasuries. BTC, often viewed as a “risk-on” asset, fell with the traditional market. The renewed uncertainty comes after last week’s market crash, which saw over $19 billion in crypto long positions liquidated in 24 hours. Another $600 million was liquidated the following day as traders unwound risk.
However, veteran trader Peter Brandt believes BTC could reclaim previous levels, even its all-time high, but only after another major correction. Brandt stated,
“Either a huge shakeout, which would be confirmed by an ATH quickly within the next week or so. Or a violation of the parabola, which every time in the past has produced a 75% price decline. I think the day of the 80% decline is over, but perhaps back to $50-60,000 and test the lower skin of the banana.”
BTC traded in bullish territory last week, and began the previous week with a 1.41% increase to $122,318. The price registered a marginal rise on Saturday before reaching an intraday high of $125,750 on Sunday. BTC ultimately ended the weekend at $123,520, up 0.87%. Buyers retained control on Monday as the price rose 0.97% and settled at $124,720, but not before reaching an intraday high of $126.296. BTC lost momentum on Tuesday, falling almost 3% to $121,393. The price recovered on Wednesday, rising nearly 2% and settling at $123,343. Selling pressure returned on Thursday as BTC fell 1.32% to a low of $119,713 before settling at $121,714.
Source: TradingView
BTC and the crypto market crashed on Friday after President Trump announced 100% tariffs on Chinese goods and new export controls for software. The announcement was made in retaliation for China's imposition of restrictions on rare earth mineral exports. As a result, BTC plunged to $102,000 on Binance before recovering and settling at $112,980. Selling pressure persisted on Saturday as the price fell almost 2% to $110,768. Despite the overwhelming selling pressure, markets recovered on Sunday. As a result, BTC rose nearly 4% to reclaim $115,000 and settle at $115,067. The price faced selling pressure and volatility on Monday, ultimately registering a marginal increase and settling at $115,274. Selling pressure returned on Tuesday as BTC fell to an intraday low of $109,945. The price is down over 1% during the ongoing session, trading around $112,247.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Investment Disclaimer
