CryptoPotato • October 9th 2026, 9:47 AM
6 Reasons Bitcoin Crashed by $7K in 3 Days: Bull Market Over or Regular Correction?
Key Summary
Bitcoin's price dropped by nearly $7,000 in just three days, with the US government being cited as a major factor. The government's large-scale transfer of bitcoin to Coinbase Prime, combined with selling pressures from ETFs, miners, and investors, contributed to the price drop. Despite the decline, experts believe it may be a regular correction rather than a bear market, and the bull market is still in its early stages.
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Bitcoin Plunges by $7K in 3 Days: Bull Market Over or Regular Correction?
Reasons Behind the Price Drop
US Government FUD
The US government's sudden transfer of sizeable portions of their crypto holdings, including 834 BTC, to Coinbase Prime, was the most likely reason for the price drop. Lookonchain reported that the government deposited roughly $1.5 billion worth of bitcoin and $62 million in WBTC into Coinbase Prime over a 72-hour period. This led to a 6.9% drop in the price of $BTC.Different Selling Pressures
ETFs saw major net inflows since mid-August and September, but the tide turned this week. October 7 and 8 were particularly painful, with net outflows skyrocketing to $487 million and $244 million, respectively. Miners also joined the selling bandwagon, with MARA Holdings disposing of 996 BTC worth over $81 million on October 8. Additionally, investors took profits, with BTC recording its second-highest realized profit day of 2026, securing over $1 billion in profits.Macro News
US President Donald Trump reassured late last night that his country won't attack Iran ahead of the midterm elections on November 3. This led to a substantial uptick in tension, impacting risk-on assets. US Federal Reserve Governor Christopher Waller also said that the central bank would require additional rate increases to reach its 2% inflation target, adding to the pressure.Expert Opinion
CryptoQuant's CEO, Ki Young Ju, tried to calm the market by saying that the decline was not out of the ordinary and that the bull market has commenced. He emphasized that it's essential to distinguish between a bull market correction and a bear market, and that Bitcoin is still in its early bull phase.#Bitcoin#US#Crypto#SEC#USGovtFUD