Bitcoin fell 4% on Thursday to about a one-month low just above $80,000, as a modest early decline accelerated into a broader sell-off across the crypto market days before the one-year anniversary of last October's flash crash.

The leading cryptocurrency is now down more than 8% since nearly hitting $87,000 just four days ago. The pullback also masks even steeper losses across the rest of the sector: ether and XRP are each lower by about 6% over the past day, while solana is off 9%. All of the major tokens are down double-digit percentages over the past week, underscoring that the selling is broad-based across the market rather than concentrated in a single token.

The fast selling comes as Saturday marks the one-year anniversary of the October 10, 2025, flash crash. On that day, bitcoin — having notched a euphoric record above $126,000 only days earlier — tumbled from about $122,000 to $105,000, and to even lower levels on some exchanges, with much of the decline unfolding within minutes in thin Friday evening (U.S. time) trade. The anniversary falls on a weekend this year, echoing the off-hours, thin-liquidity conditions in which much of last year's collapse played out.

Macro and Regulatory Headwinds

Crypto investors have plenty of other reasons for caution. Continued surges in the price of oil and in interest rates could potentially siphon money away from risk assets like bitcoin. Regulatory uncertainty also hangs over the market following the failure of the Clarity Act, a proposed market-structure bill that aimed to establish clearer rules for how digital assets are regulated in the United States, while next month's midterm elections could change the balance of power in Washington, D.C. Alongside this weekend's anniversary, those unresolved questions give investors a near-term calendar of policy and macro developments to monitor.

Outlook Remains Positive for Some

Despite the latest sell-off and the potential pain points, institutional investors appear to be growing more confident in the broad long-term outlook for digital assets. In a State Street survey of 300 asset managers, asset owners and wealth managers published Tuesday, about 51% of respondents said they expect digital assets to become mainstream within the next five years, up from just 11% in 2024.

The survey also found that institutions hold an average of 11% of their portfolios in digital assets and expect that share to rise over the next three years, pointing to growing adoption even as prices fail to break out on the upside.

: CoinDesk