Daily Crypto Signals: Bitcoin Dips Below $109K, Solana Eyes ETF Approval Amid Key Catalysts
The cryptocurrency market experienced significant volatility today with Bitcoin falling to three-week lows under $109,000 ahead of a massive
Quick overview
- Bitcoin fell to three-week lows under $109,000 ahead of a $22 billion options expiry, leading to significant liquidations in leveraged positions.
- Solana dropped below $200 but is poised for potential institutional momentum with upcoming ETF decisions, including Grayscale's spot SOL ETF approval.
- Major regulatory advancements include Hashdex's crypto ETF expansion and European banks' plans for a MiCA-compliant euro stablecoin by 2026.
- Australia is moving forward with crypto regulations that would apply existing financial service rules to crypto firms, inviting public comments until October 24.
The cryptocurrency market experienced significant volatility today with Bitcoin BTC/USD falling to three-week lows under $109,000 ahead of a massive $22 billion options expiry, while Solana SOL/USD dropped below $200 but remains positioned for potential institutional momentum following upcoming ETF decisions. Major regulatory developments emerged across multiple jurisdictions, including Hashdex’s crypto ETF expansion and new stablecoin initiatives from European banks.
Crypto Market Developments
There were a number of important events in the crypto world today that could change the rules and regulations for the business and the way institutions use it. Following the SEC’s new general listing rules, asset management Hashdex added XRP, Solana, and Stellar to its Crypto Index US ETF. This gives stock market participants more exposure to cryptocurrencies through the NASDAQ-listed fund that trades under the ticker NCIQ.
Nine major banks, including ING and UniCredit, revealed intentions to create a MiCA-compliant euro stablecoin that would launch in the second half of 2026. This is a big step forward for European digital assets. The group, which also includes CaixaBank, Danske Bank, Raiffeisen Bank International, KBC, SEB, DekaBank, and Banca Sella, wants to create a reliable European payment standard and make people less dependent on stablecoin markets that are mostly in the US.
Australia also made progress on its crypto regulations. Assistant Treasurer Daniel Mulino introduced draft legislation that would apply the same rules that govern the financial services sector to crypto firms. The proposed regulation would make two new financial products that need Australian Financial Services Licenses: “digital asset platform” and “tokenized custody platform.” The government is asking for comments until October 24.
Bitcoin Dips Under $109,000 as Traders Anticipate Volatility
Bitcoin’s price movements made the news when the top cryptocurrency went below $109,000, its lowest level in more than three weeks. This caused $275 million in leveraged bullish positions to be liquidated. The drop comes before the huge $22 billion monthly Bitcoin options expiry on Friday at 8:00 a.m. UTC. Bearish wagers are betting for the price to fall between $95,000 and $110,000. If bulls can’t get back to the $110,000 level by the end of the day, put options will have a huge $1 billion edge over call options.
It seems that traders had different feelings about trading, as the best traders at major exchanges had different positioning tactics. Earlier in the week, prominent traders at Binance cut back on long holdings, bringing the long-to-short ratio down to 1.7x, the lowest level in more than 30 days. This happened before Bitcoin plummeted below $112,000. On the other hand, whales at OKX increased long bets, counting on $112,000 support. This raised their long-to-short ratio to 4.2x, the biggest it’s been in more than two weeks. However, Bitcoin’s drop below $108,700 surprised these traders.
Even though prices are going down, several signs point to the market being strong. The premium for Bitcoin futures over spot markets stayed at 5%, which is in the neutral region. This means that there isn’t much interest in taking strong bullish or bearish bets. Bitcoin ETFs also had $241 million in net inflows on Wednesday, which gave institutional investors a little bit of hope. However, worries about the prospect of a US government shutdown and the state of the labor market linger, as the number of people filing for unemployment benefits is pretty much the same at 1.926 million.
Solana Under $200: Good Time to Buy?
On Thursday, Solana dropped sharply, falling to $192 and below the psychologically crucial $200 threshold. This wiped out its recent rise to an eight-month high of $253 in just one week. The 19% drop has made some wonder about the token’s short-term momentum, but there are a few imminent events that could change its path in a big way.
Grayscale’s spot SOL ETF is the most important possible catalyst. It has until October 10 to get its initial approval. This choice could decide whether institutional money starts to pour into Solana in the same way that it has helped Bitcoin and Ethereum over the past year. The REX Osprey Staking SOL ETF started trading in July, but a Grayscale spot ETF would let institutions to participate more directly and might open up greater liquidity. The SEC is looking at five more applications, including ones from Bitwise, 21Shares, VanEck, and Canary. The deadlines for these applications are as late as October 16, 2025.
Even though SOL has been sluggish lately, technical analysis implies that it may be getting close to a potential bottom. The Relative Strength Index (RSI) on the four-hour chart has dropped below 30, which has historically meant that Solana has hit a bottom or a higher low. This setup has happened five times since April, and four of those occasions, the market quickly bounced back. The latest decline is happening in a critical demand zone between $200 and $185, which is also where important Fibonacci retracement levels are.
Pantera Capital’s asset managers have said that SOL is “next in line for its institutional moment.” This is because only 1% of SOL’s supply is owned by institutions, compared to 16% for Bitcoin and 7% for Ethereum. However, prediction markets only give SOL a 41% chance of achieving new all-time highs in 2025. This shows that traders are still cautious, even though institutional interest is expanding.
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