US-listed spot Bitcoin exchange-traded funds (ETFs) began the historically bullish month of October with their second-best week of inflows since launch, signaling renewed investor optimism.
Spot Bitcoin (BTC) ETFs recorded $3.24 billion worth of cumulative net positive inflows over the past week, nearly matching their record of $3.38 billion in the week ending Nov. 22, 2024, according to data from SoSoValue.
The figure marks a sharp rebound from the previous weekโs $902 million in outflows. Analysts attributed the turnaround to growing expectations of another US interest rate cut, which has improved sentiment toward risk assets.
Growing expectations of another US interest rate cut triggered a โshift in sentiment,โ attracting renewed investor demand for Bitcoin ETFs, โbringing four-week inflows to nearly $4 billion,โ Iliya Kalchev, dispatch analyst at digital asset platform Nexo, told Cointelegraph. โAt current run-rates, Q4 flows could retire over 100,000 BTC from circulation โ more than double new issuance.โ
โETF absorption is accelerating while long-term holder distribution eases, helping BTC build a stronger base,โ near key technical support levels, he added.
Related: Wall Streetโs next crypto play may be IPO-ready crypto firms, not altcoins
Continued ETF inflows may provide significant tailwinds for Bitcoin in October, which is the second-best month for Bitcoin in terms of average historical returns, often referred to as โUptoberโ by crypto investors.
This weekโs $3.2 billion briefly pushed Bitcoinโs price above $123,996 on Friday, marking an over six-week high last seen on Aug. 14 for the worldโs first cryptocurrency, TradingView data shows.
Bitcoinโs breakout above $120,000 may invite a โvery quick moveโ above the $150,000 all-time high before the end of 2025, Capriole Investments founder Charles Edwards, told Cointelegraph during an interview at Token2049 in Singapore.
Related: Bitcoin rallies with DeFi as Zcash tops weekly performance: Finance Redefined
Uptober raises analyst hopes of new Bitcoin highs
Bitcoin ETFs now serve as the โclearest sentiment barometerโ for the cryptocurrency industry, indicating a potential breakout for October, Kalchev said.
โUptober is showing clear signs of an early-Q4 breakout in the crypto market, powered by ETF inflows, seasonal strength, and dovish macro conditions.โ
However, Bitcoinโs momentum will depend on several key events next week, including US Federal Reserve Chair Jerome Powellโs upcoming speech, as well as the release of the minutes from the Federal Open Market Committee (FOMC) meeting.
Investors are also looking forward to the delayed US jobs report, but its publication date depends on the length of the current US government shutdown, the first such instance since 2018.
Meanwhile, investors are expecting a strong month for Bitcoinโs momentum, as October is the second-best month in terms of Bitcoinโs historical performance.
BTC averaged monthly returns of around 20% in October, 46% in November and around 4% in December, according to CoinGlass data.
