Bitcoin exchange-traded funds (ETFs) listed in the US started the historically bullish month of October with their second-highest week of inflows since inception, reflecting renewed investor confidence.
Spot Bitcoin (BTC) ETFs saw a total of $3.24 billion in cumulative net positive inflows over the past week, nearly reaching their record of $3.38 billion from the week ending Nov. 22, 2024, according to SoSoValue data.
This figure indicates a significant recovery from the previous week’s $902 million in outflows. Analysts have pointed to rising expectations of another US interest rate cut, which has improved sentiment towards riskier assets.
The anticipation of a US interest rate cut has prompted a “shift in sentiment,” drawing renewed interest in Bitcoin ETFs, with “four-week inflows nearing $4 billion,” explained Iliya Kalchev, a dispatch analyst at digital asset platform Nexo, to Cointelegraph. “If this pace continues, Q4 flows could remove over 100,000 BTC from circulation, which is more than double what is newly issued.”
“As ETF absorption accelerates and long-term holder distribution eases, it helps BTC establish a robust base,” he added, near essential technical support levels.
Related: Wall Street’s next crypto opportunity may lie with IPO-ready crypto firms rather than altcoins
Continued inflows into ETFs may offer substantial support for Bitcoin this October, which is historically the second-best month for Bitcoin in terms of average returns, often referred to as “Uptober” by crypto enthusiasts.
This week’s inflow of $3.2 billion briefly elevated Bitcoin’s price over $123,996 on Friday, marking the highest level in over six weeks since Aug. 14, as per TradingView data.
The breakout above $120,000 might lead to a “very rapid move” above the $150,000 all-time high before the end of 2025, according to Capriole Investments founder Charles Edwards in an interview with Cointelegraph during Token2049 in Singapore.
Related: Bitcoin surges alongside DeFi as Zcash leads weekly performance: Finance Redefined
Uptober inspires analyst optimism for new Bitcoin peaks
Bitcoin ETFs now act as the “most clear sentiment gauge” for the cryptocurrency sector, suggesting a possible breakout this October, Kalchev stated.
“Uptober is displaying obvious signs of an early-Q4 breakout in the crypto market, fueled by ETF inflows, seasonal strength, and accommodating macro conditions.”
Nonetheless, Bitcoin’s momentum will hinge on several critical events next week, including an upcoming speech by US Federal Reserve Chair Jerome Powell, along with the release of minutes from the Federal Open Market Committee (FOMC) meeting.
Investors are also awaiting the delayed US jobs report, the release of which depends on the duration of the ongoing US government shutdown, the first instance of this kind since 2018.
Meanwhile, strong momentum is anticipated for Bitcoin, as October ranks as the second-best month historically for its performance.
In October, BTC averaged monthly gains of around 20%, followed by 46% in November and roughly 4% in December, as per CoinGlass data.
Magazine: Hayes predicts continued growth for crypto, while addressing ETH staking exit queue concerns: Hodler’s Digest, Sept. 14 – 20
