Bitcoin exchange-traded funds (ETFs) have kicked off October with impressive inflows, signaling a potential bullish trend for the month often called ‘Uptober.’ Analysts see Bitcoin ETFs as key indicators of market sentiment, and this month’s substantial inflows reinforce that view.
According to data from SoSoValue, spot Bitcoin ETFs have garnered $3.24 billion in cumulative net inflows over the past week, nearly reaching the record $3.38 billion seen in the week ending November 22, 2024. This marks a sharp recovery from the $902 million in outflows recorded the prior week, highlighting increased investor confidence, buoyed by expectations of further interest rate cuts in the US.
Iliya Kalchev from Nexo remarked, “The growing anticipation of a new US interest rate cut has shifted market sentiment, revitalizing demand for Bitcoin ETFs and resulting in nearly $4 billion in inflows over the past month, which could potentially remove over 100,000 BTC from circulation this quarter.” He emphasized that improved ETF absorption is aiding Bitcoin’s stability while long-term holders are distributing their assets.
This surge in inflows has driven Bitcoin’s price above $123,996, its highest since mid-August, as noted by TradingView data. Furthermore, analysts predict that if momentum continues, Bitcoin could rapidly breach the $150,000 all-time high by the end of 2025.
Uptober’s Breakout Potential Kalchev has termed Bitcoin ETFs as the “most accurate sentiment gauge” within the cryptocurrency sector, suggesting that forthcoming ETF inflows could create significant upward pressure on Bitcoin through October, a month historically known for high performance results. This bullish trajectory is shown by October’s average returns of around 20%, which bolster hopes among investors.
However, the outcome of Bitcoin’s momentum is also contingent upon crucial upcoming events, including the speech by US Federal Reserve Chair Jerome Powell and the Federal Open Market Committee’s minutes regarding monetary policy discussions. Additionally, the publication of the delayed US jobs report is on the horizon, dependent on the duration of the ongoing US government shutdown.
As the market anticipates another vibrant month for Bitcoin, many investors are looking back at historical tendencies that have favored the cryptocurrency’s performance in October.
