Daily Crypto Signals: Bitcoin Fights to Hold $110K, Dogecoin Holders Accumulate After Flash Crash
Bitcoin has declined 4.3% in October despite the month's historically strong performance, with market participants eyeing a likely Fed rate
Quick overview
- Bitcoin has declined 4.3% in October, despite historical trends suggesting gains during this month, with market participants anticipating a Federal Reserve rate cut as a potential recovery catalyst.
- Dogecoin holders are accumulating after a 66% flash crash, with on-chain data indicating it may target $1.60 by early 2026.
- Institutional interest in Bitcoin remains strong, with significant inflows into spot Bitcoin ETFs and a notable increase in public company holdings.
- Recent volatility in the crypto market includes a technical glitch affecting PayPal's PYUSD stablecoin, which briefly inflated its value to $300 trillion.
Bitcoin BTC/USD has declined 4.3% in October despite the month’s historically strong performance, with market participants eyeing a likely Federal Reserve rate cut and institutional ETF inflows as potential catalysts for recovery. Meanwhile, Dogecoin DOGE/USD holders are quietly accumulating following a dramatic 66% flash crash, with onchain data suggesting the memecoin may not have reached its cycle peak and could target $1.60 by early 2026.
Crypto Market Developments
This week, the cryptocurrency market was very volatile. For example, a technical glitch made PayPal’s PYUSD stablecoin worth $300 trillion for a short time until it was incinerated. Paxos, the company that issues stablecoins, called the blunder a “internal technical error” that happened during a transfer process. This forced Aave to temporarily stop trading PYUSD. The event made people in the crypto community raise their eyebrows, but Paxos swiftly affirmed that there was no security compromise and that customer assets were safe.
Coinbase Ventures put money into the Indian cryptocurrency exchange CoinDCX, which is worth $2.45 billion after the money was raised. The investment shows that institutions are becoming more confident in new crypto markets, especially in India and the Middle East, where CoinDCX serves over 20 million consumers after buying BitOasis. With $165 billion in yearly transaction volume and $141 million in yearly revenue, the exchange shows how big crypto usage is in these areas.
Tom Lee of BitMine and Arthur Hayes, co-founder of BitMEX, both made the bold prediction that Ethereum will hit $10,000 before the end of the year. This added to the market’s excitement. Even though there are less than three months left in 2025 and the market has been volatile lately, both analysts stuck to their guns. Lee pointed out that Ethereum has been consolidating since its all-time high in 2021, which means that the rally would be real price discovery instead of speculative excess.
Bitcoin Drops 4.3% So Far in ‘Uptober’
Traders who were hoping for Bitcoin’s usual “Uptober” surge this month are disappointed because prices are down 4.3% so far this month, even though the commodity has historically gained 20% during this time since 2019. But it looks like the macroeconomic situation is becoming better and better for a possible reversal. The CME FedWatch tool says there is a 96.7% chance of a 25-basis-point cut in the Federal Reserve’s interest rate. This would add more liquidity to financial markets and usually help risk assets like Bitcoin by lowering the cost of borrowing and encouraging investment in higher-yield opportunities.
Institutional interest remained robust despite the price dip, with spot Bitcoin ETFs collecting roughly $5 billion in net inflows during the first two weeks of October. This institutional accumulation shows that big investors are confident and may be getting ready for changes in monetary policy. Public businesses now possess $117 billion worth of Bitcoin, a 28% rise from the previous quarter. More than one million BTC are stored in treasuries. The fact that 48 additional institutional bodies joined in Q3 alone shows that mainstream usage is growing. Bitcoin’s strong 92% correlation with the Nasdaq shows that its short-term direction depends a lot on how tech stocks do. The recent recovery of US stocks could lay the way for a Bitcoin rebound as earnings season approaches.
Can Dogecoin Cross $1 By 2026?
Dogecoin’s price changed a lot, and on Friday it suddenly dropped 66%, going from $0.25 to $0.08 before immediately going back up to $0.20. The big move wiped out more over $365 million in long holdings, which is more than four times the previous yearly high of $89 million in long liquidations. This forced a huge reset in leveraged markets. Even with all this chaos, on-chain data shows that spot traders may see the decline as a chance to buy instead of a reason to sell.
Alphractal CEO Joao Wedson says that Dogecoin hasn’t reached a euphoric phase yet, and short-term holders are continuously adding coins to their wallets. The CVDD Alpha metric, which has correctly found every DOGE cycle top since 2016, says that the high in December 2024 was not as strong as peaks in the past. Recent Hodl Waves data shows that more and more of the supply is being owned by investors who have coins that are up to six months old. This is usually a sign that prices will go higher as new money comes into the market. The MVRV Z-Score is still well below the highs reached in 2021, which means that the market is still in an early expansion period and not close to a top.
According to technical research, Dogecoin’s current structure looks a lot like the pattern it followed throughout its bull cycle from 2014 to 2017. EtherNasyonal, a crypto trader, said that DOGE has met important bullish conditions: it has stayed above the 25-day moving average, broken a long-term declining trend, and entered a retest phase. These characteristics have often preceded strong rallies amid periods of market incredulity and tiredness. Market expert Trader Tardigrade identified similar technical parallels, estimating a probable breakout rally aiming $1.60 by Q1 2026. According to CryptoQuant data, retail posture is still neutral, and there are no signs of speculative frenzy. This suggests that the present accumulation phase may have a lot of opportunity to grow before retail enthusiasm reaches its pinnacle.
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