Bitcoin and Crypto Markets Rebound After Trump Signals Softer Iran Stance as ETF Outflows Near $1 Billion

Bitcoin and crypto-related stocks staged a rebound on October 9 after signals from President Trump eased fears of a broadened Iran conflict, removing a key macro overhang that had weighed on risk assets. The relief rally followed a brutal stretch in which Bitcoin dropped nearly $7,000 in 48 hours, Ethereum fell 10%, and altcoins shed 15%-20%, with roughly $1 billion in long positions liquidated over that period.

The selloff had been amplified by a wave of negative catalysts hitting simultaneously, including AI-related concerns, the U.S. government moving Bitcoin holdings, and geopolitical anxiety, pushing retail sentiment toward panic selling and prompting some bearish calls for prices as low as $40,000. Despite the rebound, Bitcoin's ability to hold the 50-week moving average near $77,000 is being watched as the critical indicator for whether the broader bull market structure remains intact.

On the flows front, the damage in ETFs continued even as spot prices recovered. Bitcoin ETFs recorded $244.1 million in net outflows on Thursday, following a $484.9 million withdrawal on Wednesday that was the largest single-day outflow since June 25. Ethereum ETFs lost another $72.5 million on Thursday, extending a losing streak to eight consecutive trading sessions and bringing combined outflows for the pair toward $1 billion for October. Ethereum itself closed the week roughly 9% lower, with the $2,400 level cited as the next key support if selling pressure persists.

On the regulatory and market-structure front, Blockchain.com applied to the CFTC for licenses to offer prediction markets and crypto derivatives in the U.S., and the CFTC separately proposed a framework for retail crypto trading. Thailand announced it is opening the door to locally listed Bitcoin and Ethereum ETFs, expanding regulated crypto investment options for domestic investors. The creator of Coinbase's Base network also predicted a coming tokenization supercycle led by equities and non-dollar stablecoins.