Bitcoin ETFs have emerged as a primary indicator of market sentiment, with analysts forecasting an imminent surge for October, commonly referred to as ‘Uptober’. Recent reports indicate that US-listed Bitcoin ETFs experienced $3.24 billion in cumulative net inflows last week, just shy of the all-time record of $3.38 billion. This notable increase follows a significant downturn the previous week, which saw outflows of $902 million.

Analysts credit this uptick to burgeoning expectations of an interest rate cut by the US Federal Reserve, thereby enhancing positive sentiment towards riskier assets. Iliya Kalchev from the digital asset management platform Nexo notes, “…Uptober is showing clear signs of an early-Q4 breakout in the crypto market, powered by ETF inflows, seasonal strength, and dovish macro conditions.”

The sustained ETF inflows are expected to provide vital momentum for Bitcoin throughout October, a month historically known for robust performance in cryptocurrency markets, averaging returns of 20%. Recent activity pushed Bitcoin prices temporarily above $123,996, marking a significant rebound in value. Charles Edwards from Capriole Investments anticipates a potential breach of the $150,000 all-time high by the close of 2025, contingent on next week’s pivotal events, including the anticipated speech by Jerome Powell and the US jobs report, the release of which is influenced by the ongoing government shutdown.