US-listed spot Bitcoin Exchange-Traded Funds (ETFs) have started October with a significant surge in investor interest, marking their second-best week of inflows since launch. This strong performance, often attributed to shifting macroeconomic sentiment, indicates a renewed optimism among investors and sets a potentially bullish tone for the cryptocurrency market in the traditionally strong "Uptober."
Renewed Investor Confidence and Record Inflows
Last week, spot Bitcoin ETFs registered a remarkable $3.24 billion in cumulative net positive inflows, nearly matching their all-time record. This figure represents a dramatic turnaround from the previous week's $902 million in outflows, signaling a decisive shift in investor sentiment. Analysts point to growing expectations of another interest rate cut in the United States as a primary catalyst, which has bolstered confidence in risk assets like Bitcoin. This surge has pushed total four-week inflows to nearly $4 billion, highlighting robust demand.
Impact on Bitcoin's Supply and Price Trajectory
The accelerating absorption by Bitcoin ETFs is having a tangible impact on the market. Experts suggest that current inflow rates could remove over 100,000 BTC from circulation in the fourth quarter alone, more than double the new Bitcoin issuance. This dynamic, coupled with a relaxation in distribution from long-term holders, is helping Bitcoin build a stronger foundation around key technical support levels. The renewed buying pressure briefly propelled Bitcoin's price above $123,996 last Friday, reaching a six-week high. Looking ahead, some analysts believe a sustained push above $120,000 could pave the way for Bitcoin to surpass its all-time high of $150,000 before the end of 2025.
"Uptober" Momentum and Future Outlook
Bitcoin ETFs are increasingly viewed as the clearest barometer of confidence for the broader crypto industry. With October historically being Bitcoin's second-best month for average returns, the current inflows are amplifying expectations for a strong Q4 rally. This "Uptober" momentum is further fueled by seasonal strength and moderate macroeconomic conditions. However, the market's trajectory will also hinge on key upcoming events, including statements from the US Federal Reserve Chair and the release of FOMC meeting minutes, which could influence investor sentiment and Bitcoin's continued price momentum.
