Bitcoin ETFs See $985 Million Inflow, Nearing All-Time High
Market Overview
- Bitcoin is nearing its all-time high of $124K, with spot ETFs observing five consecutive days of inflows totaling over $985 million on October 3.
- Ethereum ETFs also recorded $234 million in inflows, pushing ETH above the $4,500 mark, a 12% increase over the past week.
Institutional Accumulation
- The surge in ETF inflows indicates increased institutional demand after a September cooldown, suggesting large-scale investors are re-entering the market.
- Analysts describe the recent Bitcoin price dip from $117K to $108.6K as a "constructive reset," pointing towards potential for an all-time high retest.
- At present, Bitcoin trades at $122K, 1.6% below its record peak, indicating a strong rebound.
On-Chain Metrics
- Bitcoin’s UTXO count dropped to 166.6 million, the lowest since April 2024, signaling network consolidation and whale accumulation.
- This drop, alongside a price rise from $99K to $122K, reflects reduced retail activity and increased long-term holding.
Derivatives Market
- Bitcoin derivatives open interest hit a record $14.37 billion on Binance, surpassing August's peak.
- The rise in open interest, coupled with price increases from $108K to $122K, highlights a rally driven by new inflows and positions rather than short covering.
- Analysts warn that persistent high open interest amid falling prices could lead to liquidations, although current structures support the rally.
