Cryptocurrency markets face volatility amid German tax rulings

The cryptocurrency market experienced significant volatility in early October 2026. Bitcoin prices fluctuated, dropping to a low of approximately $80,337 on Thursday before stabilizing around $83,000. While Bitcoin saw a modest weekly decline of 2.1%, altcoins faced steeper losses, with Solana dropping 8.1% and Ether falling 6.8%. This downturn coincided with substantial outflows from US spot Bitcoin ETFs, which saw a combined net loss of $729 million over two days, including significant withdrawals from BlackRock and Fidelity funds.

In Germany, the Bundestag rejected a proposal by the Green Party to abolish the crypto holding period. Under current regulations, investors can sell Bitcoin or Ether tax-free if held for more than one year. However, the rejection of recent legislative changes means the existing rules remain, though a new draft from the Federal Ministry of Finance is still pending. This tax status carries implications for investors who bought during previous market highs; while holding for over a year allows for tax-free sales, it also prevents the tax-deductible recognition of capital losses.

Despite recent market volatility and ETF outflows, Standard Chartered has maintained its year-end price target for Bitcoin at $100,000.