Cryptocurrencies recover last week's losses - crypto market overview

The cryptocurrency market started the new week with an attempt to recover after the sell-off that swept digital assets last week. Bitcoin, which fell on Thursday, October 8, to about $80,000, returned above $83,000. Ethereum, XRP, Solana and other major altcoins are also showing signs of a rebound, although their weekly losses remain substantial.

The main reasons for the decline were the escalation of the situation in the Middle East, rising oil prices, growing yields on US government bonds and concerns about the future policy of the US Federal Reserve. The recovery in quotations was supported by the easing of some geopolitical fears, the return of buyers after a sharp drop and the closing of short positions.

How much did Bitcoin, Ethereum and other cryptocurrencies fall in price

Last week, pressure on digital assets intensified in the middle of the week. On October 7, Bitcoin fell to about 83,300 dollars per coin, and on October 8 its price briefly dropped to 80,000 dollars. Subsequently, the largest cryptocurrency recovered above 82,000–83,000 dollars.

According to market reviews from October 9–11, Bitcoin lost about 2–4% over the week, while many altcoins fell significantly more. Ethereum, XRP and Solana were among the most affected major assets. The approximate picture of price changes looked as follows:

According to a Yahoo Finance review dated October 10, over seven days Bitcoin lost 3.6%, Ethereum — 8.8%, XRP — 9%, Solana — 8.9%, and Stellar — 13.5%. Thus, altcoins on average turned out to be more vulnerable than Bitcoin. When investors reduce risk in portfolios, assets with lower liquidity and higher volatility often fall more than the largest cryptocurrency.

Why the crypto market collapsed

One of the main reasons for the sell-off was the escalation of the situation in the Middle East. New attacks related to the confrontation around Iran increased concerns about disruptions in oil supplies through the Strait of Hormuz.

Against this background, the price of Brent oil rose above $100 per barrel. Expensive energy resources increased concerns about accelerating inflation and the fact that central banks would be forced to keep high interest rates longer. The yield on ten-year US Treasury bonds exceeded 5.3%, which created additional competition for cryptocurrencies for investor capital.

The market was simultaneously affected by several negative factors:

• Strengthening of the dollar. In periods of geopolitical uncertainty, investors often reduce investments in volatile assets and increase the share of more traditional protective instruments.
• Concerns about Fed rates. If inflation remains high due to rising fuel costs, the probability of rapid monetary policy easing decreases. This is unfavorable for assets sensitive to the cost of liquidity.
• Outflow of funds from exchange-traded funds. According to SoSoValue, American spot bitcoin ETFs recorded a total net outflow of approximately $681 million over five trading sessions from October 5 to 9. This indicated weakening institutional demand.
• Liquidation of leverage positions. When prices fall sharply, exchanges automatically close part of the positions of traders using borrowed funds. Such liquidations can accelerate the decline and provoke new sales.
• Problems with trust and security. Additional nervousness was caused by reports of alleged cryptocurrency theft linked to devices sold through one of Ledger's Asian resellers. However, there was no confirmation of a hack of Ledger's own systems.

As a result, investors became more cautious about cryptocurrencies. At the same time, altcoins suffered more than bitcoin: the market depth of dollar-denominated altcoins, according to the CoinDesk Research analysis cited in Investing.com, decreased significantly compared with the beginning of 2025. When there is a lack of buyers, even relatively small sales can lead to significant price fluctuations.

Why the recovery began

After reaching a local low around 80,000 dollars, bitcoin began to recover. Already on October 9–10, its price returned above 82,000–83,000, and at the beginning of Monday, October 12, BTC was trading at approximately $83,900. However, compared with the previous week, it was still in the red.

Several factors supported the market. First, after the sharp decline, buyers appeared who counted on a recovery in quotations. For some participants, the drop became an opportunity to buy cryptocurrencies cheaper than at the beginning of the week.

Second, at the end of the week oil began to fall in price amid Donald Trump's statements about an energy truce between Ukraine and Russia. This somewhat eased concerns about energy supplies, although tensions in the Middle East remained.

Third, the price recovery could be associated with the closing of short positions. Traders who had bet on further declines, when buying back assets to lock in profits, create additional demand that strengthens the rebound.

Finally, after several days of selling, some sellers may have exhausted their short-term potential. But the slowdown in sales itself does not mean that the market has moved to sustainable growth.

To what levels did the main cryptocurrencies recover

As of the morning of October 12, the market showed predominantly positive dynamics over the last 24 hours, although the weekly results of most major coins remained negative.

During the day, bitcoin added about 1.15%, Ethereum — 1.6%, XRP — about 1%, and Solana — about 1.7%. This indicates a synchronous rebound of several major assets, but does not cancel the losses of previous days.

The behavior of Ethereum is especially telling: at a price of around $2,545 it remained almost 7% cheaper than a week earlier. For XRP and Solana the weekly decline was more than 7%, and for Dogecoin it exceeded 10%.

What will happen next

In the coming days, the most important reference point for the market will be bitcoin's ability to hold above $83,000 and consolidate above this level. If buyers keep the initiative, the next obstacle for recovery may become the zone of $86,500–87,000, from where the decline began the previous week.

However, risks remain significant. On Wednesday, October 14, the publication of the US consumer price index for September is expected, and the next day — the producer price index. These data may change expectations regarding Fed policy and affect demand for risky assets.

If inflation comes in above forecasts, US bond yields will rise again and the dollar will strengthen, pressure on cryptocurrencies may resume. An additional negative factor would be new escalation in the Middle East or continued outflows from cryptocurrency ETFs.

On the contrary, falling oil prices, a calmer geopolitical situation and improved demand for exchange-traded funds could support further recovery.

Conclusion: the crypto market is trying to play back last week's decline, but for now it is more of a corrective rebound than a confirmed trend reversal. Bitcoin has returned to $83,000–84,000, Ethereum — to about $2,545, and major altcoins have also risen in price. For growth to continue, the market will need not only a technical recovery, but also an improvement in the macroeconomic background, stabilization of oil prices and a return of stable demand from investors.