Oct 8, 2026, 2:14 p.m. EDT
2 min read
Summary
- Bitcoin dropped by 4% reaching a one-month low around $80,000, while alternative tokens experienced even sharper losses.
- This week’s rapid decline arrives just ahead of Saturday’s one-year marker since the previous year’s flash crash.
- Advancing oil values and borrowing costs additionally act as negative pressures.
An initial minor retreat in bitcoin BTC $81,708.96 on Thursday has gained momentum, sending the valuation down to a monthly low just above $80,000.
Bitcoin has dropped 4% over the past 24 hours and is now down by over 8% since coming close to $87,000 only four days prior. That masks much harsher performance across the rest of the market, where ether and XRP declined by roughly 6% in the last day while solana plunged 9%. Every major asset is down by double-digit percentages over the past week.
The swift sell-off unfolds as the first-year anniversary of the October 10, 2025, flash crash approaches. On that specific date, bitcoin—having achieved an ecstatic peak above $126,000 days prior—plummeted from approximately $122,000 down to $105,000, with even deeper drops on certain trading venues, where the bulk of the contraction occurred within minutes during thin Friday evening US trading hours.
Digital asset traders face multiple additional catalysts for anxiety. These consist of persistent climbs in crude oil prices and interest rates, which threaten to pull capital away from speculative instruments like bitcoin. Regulatory uncertainty also persists following the breakdown of the Clarity Act alongside upcoming midterm elections that might shift the power dynamics in Washington, D.C.
Outlook remains positive for some
Despite the recent downward movement in bitcoin and potential obstacles, institutional participants appear increasingly optimistic regarding the long-term trajectory of virtual assets. According to a State Street poll surveying 300 asset managers, asset owners, and wealth managers released on Tuesday, roughly 51% of participants anticipate that digital assets will achieve mainstream adoption within the upcoming five years, marking an increase from 11% in 2024.
The study additionally revealed that institutions maintain an average allocation of 11% of their portfolios in digital assets and project that proportion to climb throughout the next three years, signaling rising integration even as prices struggle to break upward.
Originally published at https://www.coindesk.com/markets/2026/10/08/crypto-crumbles-as-anniversary-of-flash-crash-nears.
