On Thursday, Bitcoin (BTC) took a dive below $122,000, all thanks to the U.S. dollar getting its act together, crushing risk sentiment like a bad morning coffee and tightening the global liquidity belt.
This little stumble came after Bitcoin had just made history by hitting a new all-time high, soaring above $126,000 earlier this week. Oh, the drama of it all.
The Big Picture: Macro Forces Behind the Curtain
Market analyst Jamie Coutts, who clearly has his finger on the pulse, says this dip isn’t some Bitcoin tragedy, but just the result of the big, bad macro forces in play.
“Bitcoin’s dip isn’t mysterious – it’s macro,” he tweeted, probably sipping his coffee, while watching the U.S. Dollar Index (DXY) slowly climb back toward the dreaded 100-101 resistance zone after one of its steepest declines in decades. Can’t say it’s not a spectacle.
According to Coutts, the dollar’s little comeback is tightening liquidity worldwide, and this is putting the squeeze on risk assets, like BTC. Who knew the dollar could be so ruthless?
“The real question: is this the start of a new dollar cycle or just the setup for the next leg lower?” the analyst asked. “Base case: liquidity tailwinds and an improving business cycle keep the outlook for risk assets bullish into mid-2026,” he concluded, confidently giving us a glimpse into the future.
So, here we are, with liquidity data showing just how tightly this thing is gripping the crypto world. On October 9, CryptoQuant’s Arab Chain pointed out that open interest on Binance had fallen by 7.9%, from $15.07 billion to $13.88 billion. In layman’s terms, traders are closing their risky positions and being a bit more cautious, which is totally what you do when the market feels like it might suddenly turn on you.
This drop in market leverage is a classic pre-consolidation move, meaning the rapid price hike we saw before was driven mostly by speculative excitement that’s now chilling out. Spoiler alert: not all crypto price jumps are sustainable. Shocking, right?
Regional Trends and Miner Mood: A Delicate Balance
CryptoQuant’s latest report has a little nugget of wisdom: Bitcoin’s next move could depend on the liquidity flow between Asia and the U.S. markets. Global crypto drama at its finest.
The Coinbase Premium Index, which tracks the price difference between U.S. and Asian exchanges, is still mildly positive. Translation: there’s steady institutional demand, but retail participation is cooling off, especially in Korea, where Kimchi Premiums are showing signs of moderation. Looks like retail traders are getting a little tired of the rollercoaster.
On-chain data isn’t screaming panic either. Market analyst Axel Adler Jr. tweeted that the Puell Multiple is sitting at 1.1 with Bitcoin around $121,600, suggesting miners are staying profitable but not exactly swimming in gold coins. So, no one’s jumping off the Bitcoin ship just yet, but also, no one’s making it rain either.
“The risk of capitulation is low, but there’s also no overheating like at cycle peaks,” Adler said, giving us the ultimate neutral-to-bullish vibe.
As of now, Bitcoin is trading around $121,422, down a tiny 0.4% in the last 24 hours but still up 1.2% weekly and an eye-popping 99% year-on-year, according to CoinGecko. So, yeah, it’s been a bumpy ride, but it’s still sitting pretty in the long-term scheme of things.
Although the dollar’s resurgence has put the brakes on the market for now, most analysts, including Coutts, expect the liquidity tailwinds and improving business cycle to keep Bitcoin on the up and up well into mid-2026. Fingers crossed for smooth sailing ahead!
Read More
- Gold Rate Forecast
- Brent Oil Forecast
- Silver Rate Forecast
- USD PEN PREDICTION
- OKB PREDICTION. OKB cryptocurrency
- Crypto, Because Who Needs Actual Money?
- GBP EUR PREDICTION
- INR RUB PREDICTION
- GBP CAD PREDICTION
- USD IDR PREDICTION
2025-10-10 15:27