The same inflation shock that rattled stocks this week hit crypto too — and it exposed a clear hierarchy among the three biggest names. If you're trading crypto instruments through a prop firm funded account (several firms, including some covered in our prop firm reviews, offer dedicated crypto programs), this week is a good illustration of why drawdown discipline matters as much on crypto as it does on forex.
Last Week: A Hotter CPI Print Triggers a Broad Pullback
The week's dominant story was macro, not crypto-specific: the September US inflation report came in at 3.7%, above expectations, briefly pushing the probability of an October Federal Reserve rate hike above 50% before it eased back to around 15% by the weekend as the panic faded. Higher-for-longer rate expectations typically weigh on risk assets broadly, and crypto was no exception.
Bitcoin proved the most resilient of the three, falling roughly 1.4% over the week to around $82,620, holding just above its key support level near $82,226. Bitcoin's relative strength is a familiar pattern in weeks like this one — when investors reduce crypto exposure, smaller or more speculative holdings tend to get sold first, with Bitcoin treated as the comparatively "safer" asset within the asset class. That said, Bitcoin ETFs posted a second consecutive week of net outflows, a signal institutional appetite is cooling even as the price itself held up.
Solana had a far rougher week, falling as much as 8.1% to around $109.91 before continuing to drift toward the $103–105 range by the weekend — the steepest decline among the three major assets, now down roughly 62.7% from its all-time high.
Ethereum landed in between, trading around $2,421–2,500, down significantly more than Bitcoin year-to-date (roughly 15.7% versus Bitcoin's 5.3%).
A Technical Story Worth Watching: Solana's Alpenglow Upgrade
Beyond the macro-driven selloff, Solana has a specific technical development in progress: the network's "Alpenglow" upgrade, aimed at cutting transaction finality time to roughly 150 milliseconds. Prediction markets currently assign low odds to Solana reaching $190 within October specifically, suggesting the market isn't pricing a near-term price breakout around this upgrade, even if the underlying technical story is genuine.
Why a Week Like This Matters for Prop Firm Traders Specifically
An 8% weekly swing in Solana, or even Bitcoin's smaller moves around a key support level, is exactly the kind of volatility that can breach a daily drawdown limit if a crypto position was sized the same way you'd size a calmer forex pair. As covered in our managing risk on a prop account guide, crypto's higher baseline volatility generally calls for smaller position sizing relative to your drawdown limit than a major forex pair would — this week is a clear, real example of why.
Outlook for This Week
Bitcoin: the key level to watch is the $82,226 support zone, retested multiple times this week. A break below would open further downside; a recovery above $86,602 resistance — and then $89,205 beyond that — would be needed before Bitcoin could meaningfully challenge its September highs.
Ethereum and Solana: both remain more exposed to further downside than Bitcoin if risk sentiment stays shaky. Solana's ETF flows have also turned negative, worth watching alongside the Alpenglow upgrade's progress.
The macro backdrop: the Federal Reserve's next meeting is October 28 — further data and Fed commentary between now and then will likely keep driving the kind of rate-hike-odds volatility seen this week. See our S&P 500 & Nasdaq weekly outlook for how this same macro story played out in equities this week.
Frequently Asked Questions
Why did Solana fall more than Bitcoin and Ethereum this week?
This is a common pattern during risk-off weeks — when investors reduce crypto exposure, smaller or more speculative assets like Solana tend to see larger outflows than Bitcoin, which is generally treated as the relatively safer asset within crypto.
What caused this week's broader crypto selloff?
A hotter-than-expected September US inflation report (3.7%) briefly raised the odds of an October Fed rate hike above 50%, pressuring risk assets including crypto before those odds eased back later in the week.
How should a week like this affect my crypto position sizing on a prop account?
Crypto's higher baseline volatility — illustrated by Solana's 8% weekly swing this week — generally calls for smaller position sizing relative to your firm's drawdown limit than you'd use on a calmer forex pair.
This content reflects market information available as of October 19, 2026, and is for educational purposes only — it does not constitute financial or legal advice. It is not a recommendation to use any specific firm. Cryptocurrency prices are highly volatile and can change significantly within hours; always check current prices and your local regulatory status for crypto trading before making any decision. This page should be refreshed or retired within approximately 7-10 days of publication.