Bitcoin’s Quiet Selloff While Most Assets Rally — What’s Next?
In quiet trading, Bitcoin (BTC) dropped under $113,000 on Wednesday following a Federal Reserve announcement that sent other U.S. stock market averages to new all-time highs in the S&P 500 and Nasdaq. This divergence illustrates the increasing disconnect between cryptos and normal equities led by idiosyncratic crypto dynamics, changing macro patterns, as well as on-chain metrics.
Price Movement and Market Context
Following a nearly 14% drop over October 10–11, when BTC fell below $105,000, bitcoin’s rebound has been weak. From hitting a session low on Oct. 28 short of $113,000 in the U.S. trading hours prices picked up steam to close just shy of $111,000. The broader U.S. stock market also closed at an all-time high the same day, illustrating an unusual frequency of decoupling between crypto and equities.
Technical Indicators and On-Chain Signals
• Critical pivot: $113,600 is the short-term cost basis. Holding above would indicate possible shift from correction to accumulation; breach of that level exposes deeper pullback towards $97,500.
• Inflows to exchanges: According to CryptoQuant, shark wallets (100–1,000 BTC) sent over 6,000 BTC to exchanges and whales (1,000–10,000 BTC) added ~3,250 BTC between October 25 and 28. These spikes tend to indicate profit-taking at the resistance of roughly $115,000.
Drivers of the Recent Selloff
• Profit-taking by large holders around $115,000 were capping the upside.
• Fed jitters: Investors are now looking forward to interest rate decisions in a climate awash with talk of potential easing — a development that could support the U.S. dollar and be negative for risk assets.
• U.S.-China trade talks: Geopolitical news has been moving markets, as headlines continue to direct market sentiment.
• Crypto-specific headwinds: Energy fud and tighter AML/KYC rules may put a damper on speculative zeal.
Broader Crypto Market Sentiment
Yet even with the pullback, many analysts are bullish over the medium term to longer term. Key price targets include:
• Anthony Scaramucci: $170,000 (brief)
• Tom Lee (Fundstrat): $150,000 (short term), $500,000 (5 years)
• Michael Saylor: rally driven by supply shock (long term)
• Marshall Beard: $150,000 (short term)
• Cathie Wood (ARK Invest): $1 million (5 years)
According to the more conservative predictions, such as that provided by Wallet Investor, BTC would remain above $100,000 in the next year and increase significantly over five years. Yet, regulatory risks and energy use remain major factors that could weigh on the outlook.
Outlook and Key Things to Watch
Bitcoin is ranging between $110,000 and $115,000 with volume for support yet rallies are hitting resistance. A sustained break above $115,000 may possibly pave the way for further upside towards $170,000. On the downside, the previous support at $113,600 may be tested and a further break below can lead to a test of $97,500 or lower.
In the weeks ahead, investors will be paying attention to:
• Interest rates set by the Federal Reserve and strength of the dollar
• Progress between the U.S. and China in trade negotiations
• On-chain whale activity – particularly declining selling pressure
• Significant macro estimates (inflation, employment figures)
• News on crypto regulation and energy policy
Investment Takeaways
• The recent selloff in stocks suggests equilibrium adjustments — profit-taking, not panic.
• $113,600 is an important technical pivot: holding above = accumulation; a fall below invites deeper correction.
• Flows of large holders are a sign of profit-taking over the short-term, not across-the-board liquidation.
• Bitcoin’s price action will more and more be affected by macro and geopolitical factors.
• The long-term fundamentals — fixed supply, institutional interest — are still stronger than the regulatory headwinds.
Despite the challenging macro and crypto conditions, Bitcoin is showing its strength. Investors need to keep a close eye on technical levels and market indicators, where with great upside in 2026 and beyond comes risk of volatility from BTC.
