Bitcoin News Today: Bitcoin Dominance Climbs as Crypto Markets Rebalance Post-Rally

Bitcoin retreated below $121,000 on October 9, 2025, following a brief surge toward a record high of $124,000 earlier in the day. The pullback coincided with declines in gold and silver from historic levels, as investors engaged in profit-taking after recent bullish momentum. Gold, which had reached multi-decade highs, and silver, which hit a record $50 per ounce, both saw sharp intraday reversals, contributing to broader market caution. Bitcoin's market share of the total crypto market rose to its highest level in nearly eight weeks, exceeding 59.4%, as traders rotated capital back to the largest cryptocurrency amid risk-off sentiment.

The selloff was accompanied by significant liquidations in crypto derivatives markets. Over $600 million in leveraged positions were closed across all digital assets in the past 24 hours, according to CoinGlass data. Ethereum (ETH) and other altcoins fared worse than Bitcoin, with ETH dropping 3.5% to $4,300, while BNB and DOGE fell 3–4%. The Bitcoin Dominance metric, a gauge of institutional and retail capital flows, climbed to its strongest reading since August, underscoring the flight to Bitcoin as a relative safe haven.

Analysts attributed the pullback to a combination of technical overbought conditions and macroeconomic uncertainties. Daniela Sabin Hathorn of Capital.com noted that silver's rapid ascent to $50 per ounce triggered immediate profit-taking, with the metal losing 4% within minutes of hitting the milestone. Meanwhile, the U.S. government shutdown, which disrupted the release of key economic data and delayed regulatory decisions, added to investor unease. The shutdown's potential to prolong approval timelines for altcoin ETFs further weighed on market sentiment.

On-chain data highlighted critical support levels for Bitcoin. The Cost Basis Distribution (CBD) metric indicated thin accumulation in the $120,000–$121,000 range, suggesting limited immediate demand to stabilize the price. A deeper support cluster was identified around $117,000, where 190,000 BTC had been last purchased. A retest of this level could attract defensive buying from prior holders, potentially staving off further declines. For investors, the correction presented both challenges and opportunities. Long-term holders viewed the pullback as a buying chance, while short-term traders braced for volatility amid shifting market dynamics.

The broader economic context remains pivotal. Bitcoin's price movements are increasingly intertwined with macroeconomic factors, including interest rates, inflation data, and geopolitical tensions. The Federal Reserve's dovish signals and potential rate cuts could provide tailwinds for Bitcoin in the coming months, but near-term volatility is likely to persist as markets digest mixed signals from economic data and policy developments.

The selloff also rippled through institutional activity. ETF inflows totaled $420.9 million on October 7, reflecting steady institutional interest despite profit-taking pressures. However, a stronger U.S. dollar and lingering macroeconomic uncertainties kept prices in a tight range between $121K and $125K. CoinSwitch Markets Desk noted that the market's consolidation phase was healthy for structural balance, with strategic entry points emerging for traders willing to navigate the volatility.

As Bitcoin consolidates, the focus remains on key resistance levels and macroeconomic catalysts. A breakout above $125,700 could propel the asset toward new highs, while a drop below $115,000 risks shifting sentiment bearish. Investors are closely watching upcoming inflation data and central bank communications for clues about the trajectory of interest rates, which could determine the next phase of Bitcoin's price action.

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Source: [1] Coindesk (https://www.coindesk.com/markets/2025/10/09/bitcoin-slides-below-usd121k-as-gold-and-silver-rallies-take-breathers)

[2] Invezz (https://invezz.com/news/2025/10/08/crypto-market-crash-why-are-bitcoin-and-altcoins-going-down-today/)

[3] The Financial Analyst (https://thefinancialanalyst.net/2025/10/08/bitcoin-dips-below-121k-support-levels-and-investor-strategies/)

[5] ABP Live (https://news.abplive.com/business/crypto/crypto-price-today-october-9-check-global-market-cap-bitcoin-btc-ethereum-doge-dexe-zcash-live-tv-1804979)