Key Takeaways
- • Bitcoin bounced sharply off the $80,000 level despite fundamental headwinds, with price recovering to above $82,000 at the time of StoneX's analysis after touching a fresh 4-week low at $80,000.
- • US spot Bitcoin ETFs recorded about $681 million in net outflows last week, according to market data cited by Investing.com, per Farside Investors data.
- • Bitcoin's correlation with the Nasdaq 100 stands at 0.90 over the last 50 days, and the index's roughly 3% weekly decline has spilled over into crypto prices.
- • Hotter-than-expected US CPI and PPI readings have revived fears of another FOMC rate hike at the end of the month, a key macro headwind.
- • StoneX's technical view: Bitcoin remains in its October range of $80,000 to $87,000, with a retest of near $88,000 possible if sentiment improves; a confirmed break below $80,000 would open a test of September lows near $75,000.
Summary
Bitcoin attempted a late-session recovery off the $80,000 level after a selloff earlier in the week, according to StoneX research by Matt Weller, Global Head of Research. The firm said the cryptocurrency faced more headwinds than tailwinds during the week, citing US spot Bitcoin ETF net outflows of about $681 million last week, based on market data cited by Investing.com and Farside Investors. Flows were uneven, with a day of renewed buying offering some support, but the broader trend remained negative in the latest available figures.
The wider risk environment also weighed on the asset. A drop in AI-driven technology stocks pushed the Nasdaq 100 down about 3% for the week, and given Bitcoin's 0.90 correlation with the index over the last 50 days, that weakness transmitted into crypto prices. On the macro side, higher-than-expected US CPI and PPI readings revived concerns about another FOMC interest rate hike at the end of the month.
Despite these headwinds, Bitcoin's price held up relatively well. StoneX noted Bitcoin dropped to a fresh 4-week low at $80,000 before buyers stepped in to push it back above $82,000 at the time of writing. The $80,000 level coincides with the rising 50-day exponential moving average, which StoneX said strengthens the support zone.
StoneX characterized Bitcoin as remaining within its October range of $80,000 to $87,000. If fundamental news shifts in a less negative direction, the cryptocurrency could retest its 9-month highs near $88,000 in short order. Only a confirmed break below $80,000 would shift the near-term technical outlook to the downside, opening a potential test of the September lows near $75,000.
The wider risk environment also weighed on the asset. A drop in AI-driven technology stocks pushed the Nasdaq 100 down about 3% for the week, and given Bitcoin's 0.90 correlation with the index over the last 50 days, that weakness transmitted into crypto prices. On the macro side, higher-than-expected US CPI and PPI readings revived concerns about another FOMC interest rate hike at the end of the month.
Despite these headwinds, Bitcoin's price held up relatively well. StoneX noted Bitcoin dropped to a fresh 4-week low at $80,000 before buyers stepped in to push it back above $82,000 at the time of writing. The $80,000 level coincides with the rising 50-day exponential moving average, which StoneX said strengthens the support zone.
StoneX characterized Bitcoin as remaining within its October range of $80,000 to $87,000. If fundamental news shifts in a less negative direction, the cryptocurrency could retest its 9-month highs near $88,000 in short order. Only a confirmed break below $80,000 would shift the near-term technical outlook to the downside, opening a potential test of the September lows near $75,000.
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