Crypto Market Drifts Lower as Bitcoin Heads for Fourth Straight Weekly Fall

October 27, 2026 MM Crypto Team

A Fourth Week in the Red for Bitcoin

Bitcoin is falling for a fourth week in a row, extending a correction that has quietly drained momentum from the crypto market without producing the kind of dramatic sell-off that usually grabs headlines. The decline has been gradual rather than violent, a slow drift lower that has left traders debating whether the market is building a base for recovery or sliding toward a deeper test of support. The most discussed scenario among analysts is a pullback to $75,000, where the 50-week moving average and the support zone for September’s corrective move are concentrated. That level has taken on outsized importance precisely because so many traders are watching it. Technical levels often matter because market participants collectively treat them as decision points, placing orders around them and adjusting their positions when price approaches. A test of $75,000 would therefore be a significant moment, not just because of the price itself but because of what it represents: the meeting point of a long-term trend indicator and the area where buyers stepped in during the last correction. Whether Bitcoin reaches that level, bounces before it, or breaks through it will shape sentiment for weeks to come.

ETF Flows Tell a Split Story

Beneath the weak price action, the flow of money through exchange-traded funds tells a more nuanced story. Inflows into United States spot Bitcoin ETFs resumed after two weeks of outflows, totalling $304.7 million for the week. The return of inflows is a meaningful shift, because ETF flows have become one of the most watched indicators of institutional demand for Bitcoin. Two weeks of outflows had suggested that large investors were stepping back, so a return to positive territory hints that at least some of that caution is easing. The money is not flooding in, but the direction has changed, and in a market searching for a bottom, direction matters. The picture for Ethereum is different. Outflows from United States spot Ethereum ETFs continued for a fourth consecutive week, although they slowed to $220.6 million. A fourth straight week of redemptions shows that institutional appetite for Ethereum exposure remains weak, but the fact that the pace of selling is slowing could be an early sign that the worst of the outflow cycle is passing. Taken together, the two sets of flows describe a market in transition: Bitcoin attracting fresh money again while Ethereum is still working through selling pressure, with the rate of that selling at least moderating. For traders, the divergence is worth watching, because sustained Bitcoin inflows combined with stabilising Ethereum flows would be a constructive backdrop for any recovery attempt.

Sentiment Cools Without Panic

One of the more encouraging features of this correction is what has not happened. Sentiment toward Bitcoin is cooling, and market overheating has subsided without a major sell-off, creating a healthier foundation, according to analyst Axel Adler Jr. That observation captures an important dynamic in market cycles. Bull markets often end in euphoria, with excessive leverage, crowded long positions and unrealistic expectations, and the unwind that follows is usually sharp and painful. This time, the cooling has been orderly. Excitement has faded, speculative excess has drained away, and yet there has been no capitulation, no wave of forced selling, no panic. A market that cools gradually rather than crashing tends to build a more durable base, because the weak hands leave slowly and the remaining holders are those with stronger conviction. The Fear and Greed Index and other sentiment measures reflect this shift, showing a market that has moved from optimism toward caution without tipping into fear. That middle ground is often where bottoms form, not with a dramatic event but with a quiet recognition that the worst of the excess is gone. It does not guarantee that prices will rise soon, and a test of $75,000 remains very much on the table, but it does mean the market is not fragile in the way overheated markets are. The foundation, as Adler describes it, is healthier than it was.

Hash Rate Hits a New Milestone

While prices drift lower, the infrastructure securing the Bitcoin network is stronger than ever. Bitcoin’s seven-day average hash rate has exceeded 1 ZH/s, or 1,000 EH/s, for the first time since early March, according to BlocksBridge Consulting. Hash rate measures the total computing power miners are devoting to the network, and a rising hash rate means more machines competing to validate transactions and secure the blockchain. The milestone is significant because hash rate is often treated as a proxy for miner confidence and network health. Miners invest in hardware and electricity based on their expectations of future returns, so a rising hash rate suggests they believe the network’s long-term prospects justify the cost. The recovery in hash rate is an indirect bullish signal, according to CryptoQuant chief executive Ki Young Ju, because it indicates that miners are not retreating even as prices fall. That distinction matters. Price can fall for many reasons, including short-term trading flows and shifts in sentiment, but hash rate reflects longer-term capital commitments that are harder to reverse. A network that is more secure than ever, even while its token price is correcting, presents a contrast that long-term investors often find reassuring. It does not mean the price will rise tomorrow, but it does mean the underlying system is not weakening.

Regulation Risk: The CLARITY Act Warning

Not all the news is constructive. JPMorgan warned of risks to the crypto industry if the CLARITY Act is not passed, adding a regulatory shadow to a market already struggling for direction. The CLARITY Act is the long-awaited market structure legislation that would define how digital assets are regulated in the United States, clarifying which tokens fall under securities law and which do not, and giving exchanges, issuers and investors a clearer framework to operate within. The industry has pushed for such clarity for years, arguing that uncertainty deters investment, complicates compliance and pushes activity offshore. JPMorgan’s warning highlights the other side of the coin: if the legislation stalls, the uncertainty persists, and the risks that come with it, including enforcement actions, conflicting rules and a chilling effect on innovation, remain in place. For a market already in correction, regulatory risk is an unwelcome extra headwind. Traders tend to discount what they can measure, and legislative outcomes are hard to measure, which is why warnings like this one can weigh on sentiment even when prices are already weak. The progress of the CLARITY Act will therefore be one of the key things to watch in the coming weeks, alongside price levels and ETF flows, because a clear regulatory framework could remove a major overhang while continued delay would leave it hanging over the market.

XRP Wallets Hit a Record High

Away from Bitcoin, there was a notable milestone for XRP. Santiment reported that the number of wallets holding XRP with a non-zero balance reached a new all-time high of 8.24 million. The figure measures how many individual wallets hold at least some XRP, and a record high suggests that the holder base is still growing even in a weak market. Wallet growth is a slow-moving metric, and it does not track price in the short term, but over time it reflects adoption and distribution: more people holding a token, even in small amounts, means the asset is spreading more widely. The record comes at a time when the broader market is struggling, which makes it more interesting, because it suggests that interest in XRP is not purely driven by price momentum. Holders are accumulating or at least maintaining their positions rather than abandoning the token. That behaviour is consistent with a market in which long-term holders are patient while short-term traders are cautious. It is a small data point in the context of a multi-trillion dollar market, but it is the kind of underlying trend that can matter more over months than any single day’s price move.

Ethereum’s Glamsterdam Delay in Context

Ethereum’s Glamsterdam upgrade saw its Hoodi testnet activation postponed, adding a note of caution around the second-largest cryptocurrency.

What Comes Next for the Market

The market now faces a set of clear questions. Will Bitcoin test $75,000, and if it does, will the confluence of the 50-week moving average and September’s support zone hold? Will the return of inflows into spot Bitcoin ETFs continue, and will Ethereum’s outflows keep slowing until they reverse? These questions have no quick answers, and the market is likely to keep drifting until some of them are resolved. The Federal Reserve’s decision, due October 28, is the nearest potential catalyst, and a shift in tone there could ripple through risk assets including crypto. Beyond that, the $75,000 level looms as the test that matters most. A bounce from that area, supported by ETF inflows and a healthy hash rate, would give bulls a credible story. A break below it would force a reassessment. Until then, the market drifts lower, cooler and quieter, waiting for its next direction.

FAQ

Why is Bitcoin falling for a fourth week? Bitcoin is drifting lower in an orderly correction, with the most discussed scenario being a pullback to $75,000, where the 50-week moving average and September’s support zone are concentrated.

How much flowed into spot Bitcoin ETFs this week? Inflows into US spot Bitcoin ETFs resumed after two weeks of outflows, totalling $304.7 million for the week.

What is happening with Ethereum ETF flows? Outflows from US spot Ethereum ETFs continued for a fourth consecutive week but slowed to $220.6 million.

Why is the rising hash rate a bullish signal? Bitcoin’s seven-day average hash rate exceeded 1 ZH/s for the first time since early March, and CryptoQuant CEO Ki Young Ju calls the recovery an indirect bullish signal of miner confidence.

How many wallets now hold XRP? Santiment reports the number of wallets holding XRP with a non-zero balance reached a new all-time high of 8.24 million.

Source: FXStreet

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