Bitcoin Price News: Investors Pour Over $1B Into ETFs in a Single Day

Bitcoin (BTC) has booked a 6% gain in the past 7 days and hit a new all-time high as it rose above the $125,000 mark this week.

Investors seem to be excited about an improvement in market conditions, following the Federal Reserve’s decision to cut interest rates for the first time this year.

Meanwhile, analysts expect a second 25bps cut during this month’s FOMC meeting, while market sentiment has improved significantly.

The Fear and Greed Index reflects this, as this key sentiment gauge recovered from a recent low of 34 (Fear) to 62 (Greed) at the time of writing.

A weaker U.S. dollar resulting from the ongoing U.S. government shutdown has also benefited cryptos lately. As long as this situation persists, investors will likely park their capital on BTC as a safe harbor while this ‘impasse’ is resolved.

Since the year started, the U.S. Dollar Index has seen its value drop by 9% and has moved below the 100 psychological threshold, reflecting the strength of the bearish momentum that the North American currency is experiencing.

Bitcoin ETFs Book a $1.2 Billion Single-Day Inflow

What is even more surprising is that investors have been pouring billions into Bitcoin-linked exchange-traded funds (ETFs).

On October 6 alone, these vehicles brought in $1.2 billion. Meanwhile, since the month started, BTC ETFs have received an eye-popping total of $4.4 billion in net inflows, meaning an 8% jump in the funds’ total assets under management (AUM).

Bitcoin ETFs Daily Net Inflows – Source: Farside Investors

These regulated vehicles are now holding $62 billion worth of Bitcoin – the highest amount on record.

This reflects strong interest from both retail and institutional investors at a point when the United States is rapidly embracing cryptos and integrating them progressively into its financial system.

BTC could be uniquely positioned to reap the rewards of this trend, especially if this blockchain’s DeFi space somehow thrives. Thus far, BTC is not an attractive asset to hold as it produces near-zero yields to investors.

The Babylon Protocol launched one of the first Bitcoin-native staking pools. However, its annual percentage rate (APR) is quite low and unattractive at 0.29%.

Hence, unlocking the untapped potential of Bitcoin’s DeFi could be the next milestone to push BTC to much higher ground.

BTC Retests Key Resistance From Above

In the meantime, the daily chart shows that the latest retreat is a classic retest of a key level that has already been broken.

BTC/USD Daily Chart (Binance) – Source: TradingView

If the price bounces off this level and continues to rally, the next stop for BTC will likely be the $130,000 area. The $120,000 level is the key support to watch at this point. As long as the price stays above that area, it is highly likely that we will get a strong bounce.

The Relative Strength Index (RSI) has not reached extreme levels but is still near overbought territory, meaning that positive momentum is still quite strong.

Paired with this massive amount of capital flowing to BTC ETFs, the stage looks set for an explosive move toward $140,000 at least in the next few weeks.

We have been predicting that Bitcoin will hit such a landmark price in our latest predictions, and nothing has changed in the last few days that has the strength to push the token off track.