Bitcoin ETFs Propel ‘Uptober’ with $3.2B, Second-Best Week on Record
October has kicked off with a promising sign for Bitcoin exchange-traded funds (ETFs), specifically US-listed spot Bitcoin ETFs, which reported a remarkable influx of funds. Over the first week of the month, these ETFs amassed $3.24 billion in cumulative net inflows, making it their second-best week since inception.
Significant Inflows Boost Bitcoin ETFs
This substantial inflow reflects a shift in investor sentiment, moving from a week that previously saw $902 million in outflows. Analysts credit this rebound to rising expectations for a potential US interest rate cut, which has fostered a more favorable outlook for risk-oriented assets.
Details of the Inflows
According to data from SoSoValue, Bitcoin ETFs have witnessed nearly $4 billion in total inflows over the past month. If this trend continues, it could lead to a notable reduction in Bitcoin circulation, with projections indicating that over 100,000 BTC could be retired by the end of the quarter.
- Previous week’s outflows: $902 million
- Current week inflows: $3.24 billion
- Four-week total inflows: Nearly $4 billion
- Projected BTC retirement: 100,000 BTC
Implications of ‘Uptober’
Historically, October is a favorable month for Bitcoin, often referred to as “Uptober” by enthusiasts. This month typically records some of the highest average returns for Bitcoin. The latest inflow has already pushed Bitcoin’s price above $123,996, reaching its highest point since mid-August.
Market Predictions
Market analysts suggest that Bitcoin might break through its previous all-time high of $150,000 by the end of 2025. This optimistic view comes amid indications of a potential breakout in the overall cryptocurrency market, bolstered by ETF inflows and favorable macroeconomic conditions.
- Current Bitcoin price: Over $123,996
- All-time high target: $150,000
Looking Ahead
Key events next week, including a speech by US Federal Reserve Chair Jerome Powell and the release of FOMC meeting minutes, could play a crucial role in shaping market dynamics. Additionally, investors are awaiting the delayed US jobs report, contingent on the ongoing government shutdown.
As October progresses, the expectation remains high for Bitcoin’s performance, leveraging its historical success in this month. Investors and market participants are closely monitoring how these upcoming events will impact Bitcoin’s momentum and further inflows into ETFs.
