New: Introducing “Why Is It Moving?” - lightning-fast, AI-driven explanations of stock moves

Learn More

Why Bitcoin Was Sliding Tuesday Afternoon

By Eric Volkman | October 07, 2025, 5:51 PM

Key Points

  • No rally lasts forever, and the profit-takers did their thing.

  • The looming one-week duration of the government shutdown also provided a reason for crypto investors to worry.

The latest crypto rally that saw Bitcoin (CRYPTO: BTC) cruise to yet another all-time high (in excess of $126,000) reversed course on Tuesday. Over the 24 hours leading up to late afternoon that day, the bellwether cryptocurrency lost over 2% of its value.

After the rally, a pause by investors

Profit taking from investors wanting to book gains from the rally played a part in the Bitcoin slump. Additionally, the approaching one-week "anniversary" tomorrow of the federal government's shutdown reminded some of the vulnerability of risky assets like digital coins and tokens.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

Bitcoins depicted as if real and material currency.

Image source: Getty Images.

All things being equal, macroeconomic and/or political volatility tends to drive investors into assets considered safer.

Bitcoin wasn't alone in its Tuesday price slide; in what feels like a post-rally correction rather than a potential rout, plenty of altcoins were also trading in the red deep in the afternoon.

A reason to be cheerful

Meanwhile, there were a few indications that Bitcoin specifically, and cryptos generally, still face a bright future. A report from Deutsche Bank published that day opined that both Bitcoin and gold will probably be held by many of the world's central banks by 2030. This stands to reason, as the leading cryptocurrency is increasingly being considered a reliable store of value.

Should you invest $1,000 in Bitcoin right now?

Before you buy stock in Bitcoin, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $627,363!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,137,335!*

Now, it’s worth noting Stock Advisor’s total average return is 1,061% — a market-crushing outperformance compared to 192% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of October 7, 2025

Eric Volkman has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.

Latest News