Bitcoin Rebounds Toward $82,000 But Set for Second Straight Weekly Loss

Bitcoin's price rose on Friday, rebounding toward $82,000 as a pullback in U.S. Treasury yields offered some relief to risk assets. However, the leading cryptocurrency remains on track to post its second consecutive weekly loss amid persistent macroeconomic pressures.

As of 9:51 AM ET, Bitcoin was up 2% to $81,842.1, recovering after briefly dipping below the $80,000 level in the prior session, according to data from Investing.com. The move came as investors bought the dip, encouraged by a two-day slide in U.S. Treasury yields.

Weekly Losses and Market Headwinds

Despite the daily gain, Bitcoin is down approximately 2% for the week, marking its second straight week of declines. The token is also down over 2% for October, disappointing hopes for a seasonal rally often dubbed "Uptober," which has now failed to materialize for the second consecutive year.

A confluence of negative factors has pressured the crypto market this month:

• Spot ETF Outflows: Spot Bitcoin ETFs are on pace for their second consecutive week of net outflows. Data from SoSoValue shows a net withdrawal of approximately $146.2 million so far this week.
• Interest Rate Fears: Stronger-than-expected September inflation data has reinforced market expectations for the Federal Reserve to maintain a hawkish stance, with persistently high interest rates being a negative for speculative assets like cryptocurrencies.
• Broader Market Weakness: A significant sell-off in high-growth technology and artificial intelligence stocks has dampened risk appetite, with effects spilling over into digital assets.

These headwinds have prompted some investors to take profits following Bitcoin's substantial rally in the second quarter.

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MicroStrategy Faces Potential Index Exclusion

In company-specific news, shares of MicroStrategy (MSTR), the largest publicly traded corporate holder of Bitcoin, fell 5% in early Friday trading. The drop followed an announcement from index provider MSCI that it will adopt new rules that could lead to the company's exclusion from its indexes.

MSCI stated the new methodology, set to take effect with its November index review, will apply new screening criteria tied to operating assets and financial ratios to assess non-operating companies. This change replaces a temporary restriction on firms holding over 50% of their total assets in digital assets. MSCI noted that buffer rules are in place to limit frequent changes to index composition.

Altcoins Rise but Remain Down on the Week

The broader cryptocurrency market mirrored Bitcoin's daily rebound, though most major tokens are also set to end the week with losses. Ether, the second-largest cryptocurrency, gained 4.7% to trade at $2,450.72, but it remains down nearly 3% for the week.

Other major altcoins, including XRP, Solana, and Cardano, posted gains between 3.2% and 4.3% on Friday. However, all three are facing weekly losses ranging from 5% to 10%, according to Investing.com data.