10 October 2025,05:12
Daily Market Analysis
10 October 2025, 05:12
*The debasement trade gains traction as investors hedge against fiat currency weakness.
*Growing fiscal and political instability across major economies fuels the appeal of hard assets like Bitcoin and gold.
*Bitcoin surged past $125,000 before easing on technical correction.
Market Summary:
The so-called “debasement trade” has returned to the spotlight as concerns over fiat currency stability deepen. Investors have increasingly shifted capital into alternative assets such as cryptocurrencies and precious metals, seeking protection from what they perceive as unsustainable levels of government debt and fiscal laxity.
Confidence in traditional currencies has eroded amid rising global uncertainties. In the United States, growing unease over the $37 trillion national debt has been amplified by the Trump administration’s expansive fiscal stance, with fresh spending and tax incentives threatening to push deficits even higher. Meanwhile, the U.S. government shutdown, France’s budget impasse, and Japan’s new leadership favoring aggressive public spending have collectively reinforced fears of debt-driven monetary dilution.
This combination of fiscal stress and policy inconsistency has led investors to question the long-term reliability of fiat systems. Many are rotating part of their reserves into assets “that cannot be printed,” such as gold and Bitcoin. As JP Morgan analysts noted this week, it’s “the familiar pattern of dollar debasement against alternative reserve assets amid Washington dysfunction.”
Against this backdrop, Bitcoin has enjoyed a stellar run, gaining over 20% year-to-date and briefly touching a record high of $125,000 earlier this week. The move underscores how digital assets have increasingly been viewed as a potential alternative to government-issued money — not yet a replacement, but an emerging hedge in an era of fiscal overreach and political uncertainty.
Technical Analysis
Following its surge to new highs, BTC/USD has entered a short-term corrective phase. The pair recently broke below both the $112,050 support level and its moving average line, indicating a potential continuation of the pullback. The MACD has shown increasing bearish momentum, while the RSI has formed a death cross and now sits near 46, below the neutral midline. This suggests that, in the near term, Bitcoin may continue to consolidate lower.
From a technical perspective, the next key support zone lies at $118,995, aligned with the Fibonacci retracement level, followed by deeper support around $115,215. On the upside, resistance levels are seen at $122,050 and $125,105, where fresh selling pressure could emerge.
While short-term indicators point to a technical correction, the broader trend remains supported by strong fundamentals tied to the debasement narrative. Traders should remain cautious on chasing the downside aggressively, as dip-buying interest could re-emerge if bearish momentum fades.
Resistance level: 122050.00, 125105.00
Support level: 118995.00, 115215.00
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