What Is Bolstering Bitcoin’s Recent Surge?
Spot Bitcoin ETFs have shown substantial growth, having attracted over $60 billion in cash inflows since their introduction in January 2024. Just last week, the net inflows amounted to $3.2 billion, nearing historical peaks.
Further enhancing Bitcoin’s bullish outlook, the amount of BTC on centralized exchanges has diminished to a six‑year low, standing at 2.83 million units. In the last month, a significant number of 170,000 BTC were withdrawn from exchanges. This reduced supply, combined with corporate acquisitions of the cryptocurrency, is contributing to Bitcoin’s positive momentum. The narrative of “Uptober” and the low accumulation of short positions further reinforce the bullish technical forecast for October.
Could There Be Potential Roadblocks?
However, market conditions are not without risks. Analysts from LVRG Research, such as Nick Ruck, have noted that while Bitcoin’s technical foundations are strong, various macroeconomic uncertainties still loom. Institutional enthusiasm and accumulation trends could indeed push prices to new heights, but potential tweaks in the Federal Reserve’s monetary policy could lead to pricing fluctuations.
“The uncertainty surrounding the U.S. government’s shutdown and lack of fresh macroeconomic data complicates decisions about inflation and interest rates,” shares Nick Ruck. “This could push rate cut expectations further out.”
The month’s conclusion sees the Federal Open Market Committee’s interest rate verdict coinciding with the earnings announcements from the “Mag‑7” tech giants, with stretched valuations on the line. Should these reports fuel appetite for risk, Bitcoin might accelerate towards the anticipated $140,000 mark. Conversely, valuations may seek steadier foundations if optimism is unmet.
The trajectory of Bitcoin largely hinges on both the volume of ETF inflows and the dynamics of supply outflow from exchanges, with these elements served as crucial factors in the upcoming market direction.
The coming weeks will prove critical for Bitcoin’s journey as investor sentiments and market variables continue to evolve. All eyes remain on the market’s pulse to witness how things unfold.