Bitcoin recovered above $83,000 on Monday, October 19, as technology futures snapped a weeklong decline. The rebound eased fears of a repeat of the October 19, 1987, stock market crash, although persistent fund outflows and macroeconomic concerns continued to weigh on sentiment.
Bitcoin climbed from an overnight low near $80,700 to briefly exceed $83,000 before currently trading around $82,000.
The recovery followed last week’s higher-than-expected U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) readings. Bitcoin fell from above $84,000 to just below $80,000 last week as investors reassessed inflation and interest-rate risks.
Solana also recovered, rising more than 4% from approximately $100.50 on Sunday night to $105 on Monday morning as risk appetite improved.
Strategy and Strive Continue Accumulating Bitcoin
Corporate treasury purchases continued despite market weakness. Michael Saylor’s Strategy acquired a modest 267 $BTC, bringing its holdings to 848,517 $BTC. The company also repurchased another $193 million of its $STRC preferred stock and increased its repurchase program from $2 billion to $3 billion.
$STRC fell to $97.72 during last week’s selloff, potentially encouraging further repurchases rather than new share issuance to fund Bitcoin purchases.
Meanwhile, Matt Cole’s Strive added 1,223 $BTC, increasing its holdings to 36,818 $BTC. The company expects another $600 million in purchasing capacity when proceeds from its $SATA preferred stock offering reach its bank account later this week.
Separately, Metaplanet moved closer to expanding into U.S. capital markets after Super League shareholders approved its proposed takeover. At closing, Metaplanet plans to contribute 2,100 $BTC from its 44,000 $BTC holdings and $2.5 million for approximately 93.7% ownership. The combined company plans to rebrand as Superplanet ($SUPA), a U.S.-listed Bitcoin treasury platform, with shares locked up for 5 years.
Saylor Blames Macro Pressures as ETF Outflows Continue
Strategy Executive Chairman Michael Saylor attributed Bitcoin’s weakness to restrictive trade policies, rising yields, and artificial intelligence spending. Speaking at ParaFi Capital’s Investor Day, he argued that Bitcoin suffers more than equities during risk-off shocks because it represents “pure capital.”
Saylor cited repeated trade war declarations against Canada, rising yield curves, and an estimated $1 trillion AI investment buildout competing for investor capital. BlackRock CEO Larry Fink has also warned that government deficits and technology demand compete for limited capital. Despite these pressures, Saylor maintained that Bitcoin was returning to a bull market.
Fund flows tell a more cautious story. U.S. spot Bitcoin ETFs recorded $681 million in net outflows for the week ended October 9 and another $228.6 million for the week ended October 16. Solana ETFs lost $24.81 million and $25.52 million over the same respective weeks.
CoinShares research head James Butterfill described last week’s decline as “a reminder of how sensitive Bitcoin remains to monetary policy over short horizons.”
According to CoinGlass, liquidations reached $327.08 million over 24 hours, affecting 93,756 traders. The largest recorded order involved an $11.81 million ETHUSDT position on Binance.
Can Bitcoin Still Deliver a November Rally?
November has historically been Bitcoin’s strongest month, with average returns exceeding 40%. However, the upcoming U.S. midterm elections could increase volatility, while Bitcoin’s 4-week range around $80,000 and rising leverage leave the market vulnerable to sudden liquidations.
Bitcoin rallied more than 30% in November 2024 following the U.S. presidential election, as optimism surrounding President Donald Trump’s pro-crypto policies supported prices. November’s midterm elections could potentially trigger a repeat of 2024 as traders reassess the outlook for risk assets.
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