As volatile movements in Bitcoin (BTC) and altcoins continued over the past week, BTC fell due to short-term profit-taking and briefly dropped below the $120,000 level.
However, US spot Bitcoin ETF inflows remained steady, maintaining the market's medium-term optimism, and BTC rebounded to $121,000.
While altcoins also declined along with Bitcoin, Ethereum (ETH) fell to $4,371, while altcoins such as Solana (SOL), XRP (XRP), Dogecoin (DOGE) and Cardano (ADA) also experienced significant declines.
While Bitcoin's rise is expected to continue with the arrival of the historic October and the expectation of Fed interest rate cuts, FxPro senior analyst Alex Kuptsikevich told CoinDesk that Bitcoin could experience another significant decline before the Fed's October decision.
Bitcoin could experience a correction in the $107,000 to $115,000 range ahead of the Federal Reserve's (Fed) interest rate decision at the end of October.
However, if buying flows come in strongly in this range, another attempt to break above $125,000 will follow.”
On-chain analytics firm CryptoQuant stated that the selling pressure in the derivatives market has eased compared to last month, and added, “If net inflows in ETFs continue, the short-term correction can be seen as a process where buying demand is reaffirmed.”
*This is not investment advice.