Bitcoin declines in October as four bullish signals remain intact, Galaxy and Santiment identify potential bottom

Bitcoin dropped 4.10% in October, but four bullish signals across price, positioning, on-chain data, and macroeconomic factors remain intact. Galaxy Research and Santiment suggest a potential bottom, while Glassnode data shows short-term holders are in profit. Large asset managers reduced CME Bitcoin futures positions by 57% from the all-time high, and nine firms including Goldman Sachs cut spot Bitcoin ETF holdings by 68,000 BTC-equivalent. Meanwhile, US spot Bitcoin ETFs added 87,000 BTC since the June low. Glassnode notes about 70% of short-term holder supply is in profit, down from almost all in late September. Santiment reports Bitcoin lost roughly 30,000 non-empty wallets since October 16, reading this as a possible bottom signal. Additionally, US federal debt reached $40.44 trillion on October 20, with a $1.99 trillion fiscal 2026 deficit, which Galaxy argues could strengthen the case for fixed-supply assets like Bitcoin over the long term.