6 Reasons Bitcoin Crashed by $7K in 3 Days: Bull Market Over or Regular Correction?

It was just several days ago, on Monday morning, when bitcoin last challenged the $87,000 resistance, with analysts outlining the next major targets of up to $92,000 if it fell. The reality was entirely different. BTC was rejected and plummeted by almost $7,000 in the following few days to bottom out (for now) at $80,400 on Thursday evening. Here’s why. It all began on Wednesday morning with a sudden price drop of $2,000 within 20 minutes, and the most likely reason for this came from the US government. Popular on-chain resources reported that the authorities have started to move sizeable portions of their crypto holdings, including 834 BTC, to Coinbase Prime. The transfers continued the following day or so. Ultimately, Lookonchain said that the government had deposited roughly $1.5 billion worth of bitcoin and $62 million in WBTC into Coinbase Prime over a 72-hour period. As the analysts said as well, BTC’s price dived by nearly 7% within this time. The U.S. government deposited 17,733 $BTC ($1.48B) and 750 $WBTC ($62M) into #CoinbasePrime over the past 3 days. During this period, the price of $BTC dropped 6.9%. https://t.co/esJntewKzz https://t.co/g69x1ziB1K — Lookonchain (@lookonchain) October 9, 2026 This one is rather obvious. If BTC’s price drops, someone has to be selling, right? Well, here’s who in particular. First, let’s start with the ETFs. The funds 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. Secondly, some miners hoped on the selling bandwagon as well. Lookonchain noted that MARA Holdings had seemingly disposed of 996 BTC (worth over $81 million) on October 8. And there was also profit-taking. According to data from Santiment, BTC recorded its “second-highest realized profit day of 2026” yesterday, with investors securing over $1 billion in profits. The yearly peak was slightly above this number at $1.04 billion. “These spikes frequently appear around short- to mid-term market cooling periods. Heavy profit-taking adds sell-side pressure, while falling prices can trigger additional traders and leveraged positions to exit. It does not guarantee a major reversal, but $1.03B in realized profits is a clear sign that Bitcoin’s recent rally is being tested,” said the company. Although US President Donald Trump <