Bitcoin Price Rises Nearly 11% in October Amid ETF Inflows
The historic trend of BTC rising in October continued despite a rocky start and a decline on the final day. The asset's price increased nearly 11% throughout the month.
BTC began October around $64,000, breached $66,000 mid-month, and reached over $73,000 earlier this week. Contributing factors included significant bitcoin ETF inflows and favorable polling for Donald Trump.
On Halloween, bitcoin traded between $69,000 and $70,000 after a slight dip.
Historically, November has shown mixed returns; four of the last six Novembers ended negatively. However, it holds the highest average monthly return for BTC, driven by notable gains of 449% in 2013, 53% in 2017, and 43% in 2020.
The global macroeconomic environment is shifting towards monetary loosening, which is seen as beneficial for BTC, according to OTC Capital CEO Brian Dixon. He noted that prior upward price movements were likely front-run due to bitcoin ETF approvals, with potential for a major breakout following consolidation.
However, a possible recession could disrupt BTC's upward trend since early 2023, as indicated by YouHodler's Ruslan Lienkha. He mentioned that the psychological level around $80,000 might trigger profit-taking among investors, leading to selling pressure.
October saw strong demand for bitcoin ETFs, with inflows amounting to $5.4 billion, significantly up from September's nearly $1.3 billion. This made October the second-best month for ETF flows, just below February's $6.1 billion.
| Month | Net Flows (millions $) |
| January | +1,460 |
| February | +6,063 |
| March | +4,637 |
| April | -345 |
| May | +2,073 |
| June | +667 |
| July | +3,169 |
| August | -92 |
| September | +1,263 |
| October | +5,415 |
Upcoming discussions will cover the potential implications of the US election on the crypto market.