Bitcoin extended its decline for a fourth consecutive session on Friday, with the cryptocurrency trading near Rs. 73.8 lakh as investors turned cautious amid weaker institutional demand, elevated derivatives activity and shifting expectations around US monetary policy. Ethereum was trading near Rs. 2.36 lakh, while the broader crypto market showed mixed momentum. Bitcoin’s inability to sustain levels above the $80,000 mark has added to selling pressure and prompted some traders to book profits.
According to market data, Bitcoin was trading around $77,300, or nearly Rs. 74 lakh, after falling about 0.8 per cent over the previous 24 hours. Analysts said the cryptocurrency has repeatedly struggled to break through the $79,000-$80,000 resistance zone. Hotter-than-expected US Producer Price Index data has also increased concerns about persistent inflation and strengthened expectations of a possible 25-basis-point Federal Reserve rate hike.
Institutional demand has shown signs of moderation as spot Bitcoin exchange-traded fund flows weakened after stronger inflows earlier in September. Vikram Subburaj, CEO of Giottus.com, said Bitcoin’s failure to remain above $80,000 had triggered profit-taking, while macroeconomic factors remained a key driver for the market. He also pointed to elevated crude oil prices and the US 10-year Treasury yield approaching 5 per cent as factors adding pressure to risk-sensitive assets.
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Other analysts highlighted the impact of inflation concerns, geopolitical tensions and heavy positioning in derivatives markets. The CoinSwitch Markets Desk said Bitcoin had slipped below $77,000 amid hotter US inflation data and rising Middle East tensions, while markets were pricing in a roughly 74 per cent probability of a 25-basis-point Fed rate hike. Prateek Gupta, Head of Business at Mudrex, said nearly $190 million in positions had been liquidated within an hour, adding to the selling pressure.
Major altcoins were mixed on Friday, with Binance Coin trading around $713.92, Solana near $99.81, XRP around $1.35 and Dogecoin close to $0.08394. Analysts also noted that Glassnode’s sell-side risk ratio remained near record lows, while the share of realised profits attributed to long-term holders had fallen substantially, suggesting newer market participants were contributing to selling activity.
Market participants are now closely watching the $75,700-$76,000 support zone for signs of further weakness or stabilisation. A sustained recovery towards the $78,000-$80,000 range could improve Bitcoin’s short-term momentum, while continued ETF outflows and elevated derivatives positioning could keep volatility high. Traders are also awaiting key US economic data and the Federal Reserve’s upcoming policy decision for further direction.
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