Key Points
- Bitcoin (BTC) fell to $120,000, marking a 3.75% drop from its record high of $126,000.
- Meanwhile, spot gold reached a historic high, trading at $4,017.16 per ounce.
Bitcoin (BTC) has recently experienced a drop, now trading around the $120,000 mark. This represents a 3.75% decrease from its all-time high of $126,000 earlier in the week.
The leading digital asset began to cool off following a strong rally that started in late September. Spot BTC ETFs recorded their second-highest inflow since their launch in January 2024.
Funds and Projections
On October 6, these funds brought in a total of $1.19 billion in inflows. BlackRock’s iShares Bitcoin Trust (IBIT) led the pack with $967 million. However, on October 7, the ETFs experienced outflows totaling $23.81 million.
Economist Timothy Peterson has suggested that there is a 50% chance that Bitcoin could surpass $140,000 before the end of October. His models, derived from hundreds of simulations using real Bitcoin price data since 2015, suggest that half of the month’s potential gains may have already occurred.
However, Peterson also highlighted a 43% chance that Bitcoin could close below $136,000, underscoring the volatility that continues to define the crypto market. If Bitcoin were to follow the pattern, it would need to gain approximately 14.7% from current levels to reach the $140,000 target.
Gold’s Record High
While Bitcoin is cooling off, traditional safe-haven assets are rallying. Spot gold surged past $4,000 an ounce to reach an all-time high, trading at $4,017.16 per ounce as of the morning on Oct. 8. Also, US gold futures for December delivery rose to $4,040 per ounce. Gold’s performance in 2025 has been exceptional, up 53% year-to-date following a 27% increase in 2024.
Investors have increasingly turned to gold as a hedge against inflation and currency debasement, even as Bitcoin continues to mature as a digital alternative.
Selling Pressure
According to CryptoQuant, Bitcoin’s Fund Flow Ratio, which measures exchange-related activity relative to total transaction volume, has fallen to its lowest level since July 2023.
The decline suggests that more BTC is being transferred to private wallets for long-term storage, used in DeFi applications, or traded via Over-The-Counter (OTC) channels by institutions rather than being moved for liquidation. Such behavior typically precedes medium-term bullish reversals, where investors often search for the next best crypto to buy.
