3 Reasons Why is Bitcoin Down Today: And What Happens Next?

Nearly $150 billion has evaporated from the crypto market this week as the top token, Bitcoin (BTC), slips 2.50%, dragging altcoins alongside.

Let’s break down the three biggest reasons behind this week’s dump and what traders can expect next.

OG Bitcoin Whale Sparks Panic Selling

Bitcoin’s slide in the past 24 hours began specifically after a vintage whale wallet—active since 2010—sold 3,000 BTC through Hyperliquid’s DEX. That amounts to over $363 million worth of sales at that time.

🐳 A BITCOIN OG WHALE SOLD 3,000 $BTC THROUGH HYPERLIQUID AND RECEIVED 363.9 MILLION $USDC

👀👀👀 pic.twitter.com/odAuAVILQ1

— Kyle Chassé / DD🐸 (@kyle_chasse) October 8, 2025

Transfers to exchanges typically hint at sales afterward. The BTC market can absorb a $363.90 million selling pressure, but given the whale still holds over $3.4 billion worth of BTC, it raises fears that the entity may eventually sell-off the entire holding.

Markets tend to overreact when old wallets move, as these early holders are viewed as “smart money” or insiders.

Inflation Jitters Shake Rate Cut Bets

Adding to the market’s anxiety, the New York Federal Reserve’s latest survey showed that US inflation expectations have climbed to their highest level in three and a half years.

The report revealed that one-year-ahead expectations rose to 3.4%, up from 3.2% in the previous month, a signal that Americans are bracing for higher prices.

That uptick complicates the Federal Reserve’s outlook, as it has been signaling rate cuts through 2026 to support a slowing economy.

Rising inflation, however, reduces the likelihood of early easing, strengthening the US dollar and putting pressure on risk-on assets like Bitcoin, Ethereum, and Solana.

In short, markets are adjusting to the idea that the Fed might stay restrictive for longer, and Bitcoin is feeling the heat.

Bitcoin Hits Key Distribution Area

From a technical perspective, Bitcoin’s recent pullback aligns with its approach toward a major distribution zone above the $124,000 level, where sellers have repeatedly taken profit over the past year.

The area, highlighted on the daily chart, coincides with an overbought relative strength index (RSI) reading above 70, a level that has historically preceded short-term corrections.

Traders are watching this range closely, as failure to break above it could confirm a local top formation, prompting a deeper retracement toward the 50-day exponential moving average (near $118,700).

What Happens Next?

Despite the recent correction, Bitcoin’s broader structure still favors the bulls.

On the three-day chart, BTC appears to be retesting the upper trendline of a year-long ascending triangle, a pattern typically viewed as a continuation signal in uptrending markets.

The breakout above the triangle’s resistance near $120,000 confirmed a technical shift in market sentiment, flipping that zone into potential new support.

If the retest holds, Bitcoin could resume its advance toward the pattern’s projected upside target near $144,000, aligning with the height of the triangle added to the breakout point.