Bitcoin Stabilizes Near $81,700 as Pepe Leads Market Rebound
Bitcoin steadies after tech-sector decline
Bitcoin rose 0.5% to approximately $81,700 on Friday, recovering from a low of $81,000 earlier in the day. This stabilization follows a sharp decline in the technology sector on Thursday, where the Nasdaq Composite index dropped 2.6%.
While Bitcoin showed modest gains, other digital assets, often called altcoins, moved faster. The frog-themed memecoin Pepe jumped 13%, leading a broader 2.9% rise in the memecoin market. Ether, the second-largest cryptocurrency, rose 0.9% during the same period.
Key market numbers
- Bitcoin price: $81,700 (up 0.5%)
- Pepe price increase: 13%
- CoinDesk 80 altcoin index: up 1.4%
- U.S. Spot Bitcoin ETF outflows: $635 million on Thursday
Derivatives data shows shift in trader behavior
Trading activity in the crypto futures market—where traders bet on the future price of assets—showed signs of cooling. Trading volume fell by 19% over 24 hours, and liquidations, which happen when an exchange closes a trader's position because of losses, dropped by 23%.
However, open interest rose by 1%. Open interest refers to the total number of outstanding derivative contracts that have not been settled. This suggests that traders are starting to open new positions again rather than just closing old ones. In the Bitcoin market, "long" traders, who bet the price will go up, are currently paying slightly more to maintain their positions.
Mixed results for different digital assets
Market data shows different trends across various cryptocurrencies. Funding rates for BNB, SUI, and Dogecoin turned positive, meaning traders betting on price increases are now paying those betting on decreases.
Conversely, some assets experienced "capital flight," where investors quickly withdraw their money. This was most visible in Zcash (ZEC), where open interest fell significantly more than the price. Other assets like Solana (SOL) and XRP also saw traders closing out their positions. In the options market—contracts that give the right to buy or sell at a specific price—Bitcoin traders focused on bets for higher prices, while Ether traders showed more interest in protecting against price drops.
Factors influencing market sentiment
The crypto market recovery is happening alongside a stabilizing Asian stock market. While Japan’s Nikkei 225 saw a small dip, markets in South Korea and China reported gains on Friday. Investors are also monitoring traditional commodities, with gold and silver prices falling while crude oil rose slightly.
Institutional interest showed some cooling on Thursday. After gaining over $1 billion earlier in the week, U.S. spot Bitcoin ETFs—investment funds that allow people to buy into Bitcoin through regular stock exchanges—saw $635 million leave the funds in a single day.
What traders are watching next
Market participants are now focusing on the Federal Reserve’s upcoming meeting scheduled for October 27–28. Concerns about inflation remain as Brent crude oil prices stay near $113 per barrel, which may influence future economic policy decisions.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.