From CryptoPotato · By Jordan Lyanchev
It was just several days ago, on Monday morning, when bitcoin last challenged the $87,000 resistance, with analysts outlining the next major targets of up to $92,000 if it fell.
The reality was entirely different. BTC was rejected and plummeted by almost $7,000 in the following few days to bottom out (for now) at $80,400 on Thursday evening. Here’s why.
US Govt FUD
It all began on Wednesday morning with a sudden price drop of $2,000 within 20 minutes, and the most likely reason for this came from the US government. Popular on-chain resources reported that the authorities have started to move sizeable portions of their crypto holdings, including 834 BTC, to Coinbase Prime.
The transfers continued the following day or so. Ultimately, Lookonchain said that the government had deposited roughly $1.5 billion worth of bitcoin and $62 million in WBTC into Coinbase Prime over a 72-hour period. As the analysts said as well, BTC’s price dived by nearly 7% within this time.
The U.S. government deposited 17,733 $BTC ($1.48B) and 750 $WBTC ($62M) into #CoinbasePrime over the past 3 days.
During this period, the price of $BTC dropped 6.9%.
https://t.co/esJntewKzz https://t.co/g69x1ziB1K
— Lookonchain (@lookonchain) October 9, 2026
Different Selling Pressures
This one is rather obvious. If BTC’s price drops, someone has to be selling, right? Well, here’s who in particular. First, let’s start with the ETFs. The funds saw major net inflows since mid-August and September, but the tide turned this week. October 7 and 8 were particularly painful, with net outflows skyrocketing to $487 million and $244 million, respectively.
Secondly, some miners hoped on the selling bandwagon as well. Lookonchain noted that MARA Holdings had seemingly disposed of 996 BTC (worth over $81 million) on October 8.
And there was also profit-taking. According to data from Santiment, BTC recorded its “second-highest realized profit day of 2026” yesterday, with investors securing over $1 billion in profits. The yearly peak was slightly above this number at $1.04 billion.
“These spikes frequently appear around short- to mid-term market cooling periods. Heavy profit-taking adds sell-side pressure, while falling prices can trigger additional traders and leveraged positions to exit. It does not guarantee a major reversal, but $1.03B in realized profits is a clear sign that Bitcoin’s recent rally is being tested,” said the company.
Macro News
Although US President Donald Trump reassured late last night that his country won’t attack Iran ahead of the midterm elections on November 3, he had previously hinted that they were planning to do so. This major macro factor, along with secret meetings at Camp David with top security officials, led to a substantial uptick in tension. Similar news typically impacts BTC, and we can add it to the list.
Separately, US Federal Reserve Governor Christopher Waller said yesterday that the central bank would require additional rate increases to reach its 2% inflation target. Although he added that there was “flexibility” on the pace of hikes, leaving room for a pause at the upcoming late October meeting, risk-on assets felt immediate pressure.
Regular Correction?
Dropping by $7,000 in just days sounds painful, because it is, but it’s far from the first similar instance in BTC’s long and volatile history. As such, CryptoQuant’s CEO, Ki Young Ju, tried to calm his over 500,000 followers by saying this wasn’t anything out of the ordinary. Moreover, he remains a believer that the bull market has commenced and people should not be afraid of similar “bull market corrections.”
Don’t confuse a bull market correction with a bear market. Bitcoin is still in the early bull phase. BTFD. https://t.co/vmCbDXog1O
— Ki Young Ju (@ki_young_ju) October 8, 2026
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