Bitcoin rebounded to $82,078 on Friday, October 16, after briefly dipping below $80,000. The recovery was supported by a weaker dollar and lower US Treasury yields, which helped stabilize cryptocurrency markets. Ethereum also gained, rising 0.7% to $2,429, while the broader crypto market saw mixed movements.
The rebound came after risk-sensitive assets faced pressure due to stronger-than-expected US producer inflation, which raised concerns about prolonged high interest rates. Avinash Shekhar, Co-Founder and CEO of Pi42, noted that Bitcoin showed resilience despite inflation surging to 6.3% year-on-year and rising expectations of a December rate hike.
Key factors supporting Bitcoin's recovery include a record high in the number of wallets holding between 10 and 10,000 Bitcoin and a 14% decline in open interest since its previous peak near $87,000. Minal Thukral, Executive Vice President and Crypto Business Head at CoinDCX, highlighted a neutral reading on the crypto Fear and Greed Index, which reflects market sentiment.
Persistent inflation and uneven institutional flows remain challenges. US spot Bitcoin ETFs recorded net outflows of $261.4 million on October 14, while spot Ether ETFs saw outflows of $129.51 million. Despite this, Nischal Shetty, Founder of WazirX, noted that ETF activity does not solely determine prices, as other market factors can offset outflows.
Investors are watching key levels, with resistance near $82,544 and support around $82,000 and $81,000. Purvang Mashru, Lead Analyst at BitDelta India, and Riya Sehgal, Research Analyst at Delta Exchange, emphasized the importance of these levels in assessing Bitcoin's recovery potential. Upcoming US economic data and Federal Reserve signals will also influence market sentiment.