Bitcoin Poised for October Rally as Spot ETF Inflows Surge to $1.11 Billion

Bitcoin (BTC) is showing signs of a potential rally this October. Some on-chain metrics suggest that the price could reach around $73,000. Let’s break down what this means for BTC holders.

The growing demand for Bitcoin Spot ETFs is a key indicator of this potential rise. Over the past week, these funds have seen inflows of $1.11 billion. On September 26, the inflows hit $366 million in a single day, the highest since July 23. Major ETF providers like BlackRock, Fidelity, and Ark attracted significant investments, with inflows of $118 million, $73 million, and $133 million, respectively. This shows strong interest from traditional investors in the U.S.

Moreover, shifts in the U.S. economy heavily influence Bitcoin’s price. Factors like interest rate changes, inflation, and employment data play a role. Because of this, demand from U.S. investors is crucial. It often impacts Bitcoin’s price, making it important to keep an eye on their activity.

Recently, both retail and institutional investors in the U.S. have been increasing their BTC holdings. The Coinbase Premium Index reflects this trend. Julio Moreno from CryptoQuant noted that rising demand in the U.S. has pushed Bitcoin’s price toward $65,000. If this bullish sentiment continues, we might see Bitcoin trade above $70,000 soon.

Another positive sign is the rising open interest in Bitcoin futures. Open interest represents the total number of outstanding contracts that haven’t been settled. Currently, it stands at $19 billion, up 26% in the last 30 days. Generally, an increase in open interest indicates more market activity, which could drive prices higher. However, some analysts warn that this also poses risks for those holding long positions. JA Martuun pointed out that with open interest at such a high level, it may not be the best time to enter new long positions.

Combining all this data suggests a bullish outlook for Bitcoin. If this trend holds, we could see support at around $64,312 and resistance at $67,929. A successful break above this level could lead Bitcoin to $73,777, a price it last reached on March 14.

However, we should also consider the Crypto Fear & Greed Index. Right now, it indicates an overheated market. When the index is in the “Greed” zone, it shows that holders are overly optimistic. Historically, this can signal a price correction. If Bitcoin does correct, it might drop by 15%, bringing it down to around $54,302. This would contradict the bullish outlook.