Bitcoin Struggles Below $86,000 Amid Profit-Taking and Institutional Caution
Bitcoin (BTC) is facing pressure on Tuesday, trading below $86,000 as profit-taking activity intensifies. The mixed sentiment comes from institutional demand, where MicroStrategy (MSTR) added 334 BTC to its reserves, while spot Exchange Traded Funds (ETFs) recorded a mild outflow of $89.90 million on Monday. Rising US Treasury yields and a stronger US Dollar (USD) are adding to the headwinds for BTC, raising doubts about the sustainability of its bullish momentum.
Institutional demand showed cautionary signs at the start of the week. Data from SoSoValue indicated that BTC spot ETFs experienced a mild outflow of $89.90 million on Monday, breaking a two-day inflow streak from the previous week. If this outflow trend continues, BTC could face further pullbacks. On the corporate side, Michael Saylor announced that MicroStrategy acquired another 334 BTC last week, continuing its aggressive accumulation strategy. The company now holds 848,000 BTC, valued at $5.70 billion in USD assets.
Bitcoin bulls are losing momentum, with BTC consolidating below its recent high of $87,000. The 10-year US Treasury yield rose to a fresh two-decade high near 5.35% on Monday, making traditional fixed-income assets more attractive compared to risky assets like BTC. Additionally, the US Dollar Index (DXY) reached an intraday high of $102.53, further weighing on BTC. Simon-Peter Massabni, Head of Business Development at XS.com, noted that cryptocurrencies are finding support in reduced expectations of an October rate hike and institutional purchases, but elevated yields and inflationary pressures continue to weigh on market sentiment.
Profit-taking activity surged to a new yearly high, as indicated by Santiment’s Network Realized Profit/Loss (NPL) metric. The metric spiked sharply on Monday, reaching its highest level since November 23, 2025, indicating that holders are selling at significant profits, increasing selling pressure. Despite the pullback, BTC is sustaining a bullish near-term bias, holding above key moving averages. Immediate support is seen at $85,000, followed by the 50-day Exponential Moving Average (EMA) at $79,430.