Low trade volumes and conflicts around the world that are impacting investor sentiment are causing Bitcoin's price to decline. Bitcoin has lost 9.4% during the last six months due to the almost complete disappearance of the bullish momentum that had carried it to a 66.1% year-to-date gain, hitting $27,640. Although there was some initial hope after Grayscale's legal triumph over the SEC, Bitcoin's subsequent results have been disappointing, extending its losing run from September into October.

Some observers have compared the current decline in the price of Bitcoin to the pre-bull market cycle from 2015 to 2017, with $28,000 serving as a crucial resistance level. Beginning in 2023, short-position traders dominated liquidations in the futures market. The largest single day of Bitcoin long liquidations since the Terra Luna collapse in May 2022 occurred on August 17 as a result of a flash fall, which resulted in long liquidations of over $213.5 million.

Since that flash crash, money has been continuously leaving risky investments like Bitcoin, which has led to its decline. Additionally, there has been a decline in Bitcoin trading volumes, with Binance losing market share for a seventh straight month as a result of the end of zero-fee trading. Institutional investors continue to have a positive outlook for the long run despite short-term uncertainty, aggressively supporting Bitcoin financial products.