The Bitcoin (BTC) market went through a week of euphoria and panic in a matter of days.
After hitting a new all-time high of over $126,000 on Monday, October 6, the digital asset’s price saw a sharp correction on Friday. Falling to levels close to $102,000.
The following chart provided by TradingView shows how BTC has trended over the past week.
The trigger was not a flaw in the protocol or an inherent problem with the technology, but rather an external factor shaking up global markets: a threat from US President Donald Trump. Imposing a “significant increase in tariffs” on Chinese products.
This type of macroeconomic event creates short-term volatility, but They do not change the fundamentals that have been driving Bitcoin’s bullish macro trend.. For those who are aware of this, this correction is nothing short of a realignment that provides a valuable opportunity to accumulate assets at a discount.
On-chain data and the behavior of various investor segments suggest that the bullish thesis is more valid than ever.
Friday October 10th served as a stark reminder of how geopolitics can impact all asset classes. President Trump’s remarks reignite fears of a trade war. Major investors reduce exposure to assets considered ‘risky’. Bitcoin and stock indexes took a hit.
However, amid widespread uncertainty, the inner workings of the Bitcoin market have shown resilience. Analyst Willy Wu said on X Account:
Bitcoin held up well after Friday’s sharp stock market selloff, 100% tariffs on China, and fears of an escalating trade war. Internally, BTC is building a bullish structure due to increased inflows, which may be protecting BTC. For now, things are going well.
Willy Wu, trader and market analyst.
This sudden drop served to remove excess leverage from the system, as it often does. Carlos Maslaton, an Argentine lawyer and former head of finance at Xapo, described this scenario in broad strokes: “On Friday, in just three hours, millions of positions were melted, and $10,000, $100,000, $1 million, even $10 million in assets were reduced to zero,” Maslaton said. It was a lesson to “a new generation that did not know that such a thing could happen (…)”a rigorous introduction to the risks of financial leverage.
While volatility is painful for many, it is considered by others to be an inherent characteristic of the market that can be managed. Trader Marielle Lang commented on this as follows: “You don’t need a crystal ball. You need a strategy to profit from uncertainty. Organize yourself and you’ll thank yourself.”
While some operators who took advantage of leverage suffered catastrophic losses, as in the case of Juan Martín Collavini, who he described on social networks as having “wasted years,” others saw the panorama from a strategic point of view.
Beyond short-term noise The reasons that led Bitcoin to all-time highs still exist.
Institutional demand and large flows through spot exchange-traded funds (ETFs) in the U.S. are major drivers of this cycle. Just on Monday, October 6th, these instruments recorded net inflows of $1.21 billion, the second-best day on record.
BlackRock’s IBIT ETF, the largest on the market, last week managed more than 800,000 BTC, representing 3.8% of the total future Bitcoin supply.
This systematic accumulation by Wall Street giants shows a long-term belief that is not wavered by the US president’s social media posts. The investment theory of these giant companies and institutional investors is Bitcoin’s unique attributes: its absolute scarcity and its nature as a store of value asset.
This last point is important. Investors are seeking haven amid continued global dollar weakness and inflation, with the DXY index below its annual average for more than 220 days.
As reported by CriptoNoticias, both Bitcoin and gold have recently hit record highs, a sign that analyst Bob Chasin says could be a “return to the 1970s,” a decade of high inflation and distrust of fiat currencies. The threat of a tariff battle only further accentuates these fears and reinforces the perception of Bitcoin as “digital gold.”
Jan3 CEO Samson Mow summed it up in an interview with this media a few days ago:
Everyone is competing for a piece of the 21 million pie, and there is very little Bitcoin left.
Samson Mo, CEO of Jan3.
The supply of Bitcoin is fixed and predictable. Demand is growing with the advent of ETFs, corporations, and ultimately nation-states. In the long run, the equation is clear.
The majority of the market’s reaction to Friday’s decline supports opportunism. Far from a general panic, Many investors took advantage of the decline in stock prices to increase their holdings.
Tomas Field, public relations manager for the Lemon exchange, shared the exposure data with CriptoNoticias. Field said that in the middle of the fall, “users saw an opportunity and bought in large quantities, especially against the (Argentine) peso.” The phenomenon was so large that The platform hit a peak of 1.5 purchases per second during the decline. Yesterday was really crazy. he took advantage of it immersion».
This move shows the growing maturity of the retail market and appears to be learning from previous cycles. We now interpret corrections for what they are: temporary readjustments in a larger trend.. Lemon’s frenzied buying signals strong belief in Bitcoin’s long-term potential.
In conclusion, volatility can be disconcerting, but it is important to distinguish between the trigger of the event and the underlying health of the asset.
Friday’s decline was a response to an external macroeconomic shock that affected all markets, and was not indicative of any weakness in Bitcoin’s value proposition.
Record institutional investor flows, growing adoption as a store of value, and continued supply are the pillars supporting a bullish long-term outlook.
For those with the right timeline, Friday’s storm may have left some clear skies. This is a once-in-a-lifetime purchasing opportunity.
