Bitcoin experienced a sharp decline, dropping nearly $4,000 after reaching a record high of $126,198.07 on October 6. Traders are now closely monitoring the $112,200 support level, as a breach could lead to panic selling and increased downward pressure. Despite the recent drop, institutional inflows into Bitcoin have reached $3.5 billion, indicating sustained long-term confidence in the market. This influx of institutional investment suggests that while short-term volatility persists, the overall sentiment remains positive.