Bitcoin Traders remain optimistic that prices will rise more steadily in the coming weeks, even as profit-taking has dampened a recent rally that set new records.
The leading cryptocurrency by market value briefly fell to $120,000 during overnight trading, dragging the broader market lower. Ether fell 2.4% in the last 24 hours to reverse all gains from the last 7 days, Solana’s SOL, , and Cardano’s ADA fell as much as 3%, according to CoinDesk data.
BTC’s weak tone belies continued demand for U.S.-listed spot ETFs. This week, ETFs saw $2.72 billion in inflows, which traders say marks the asset’s emerging role as a digital hedge alongside gold, which itself crossed the $4,000 an ounce mark this week.
These numbers are hard to ignore, especially since the Federal Reserve adopted a dovish stance following its September rate cut.
Breaks, however, have been common at recent rallies. After peaking in July, bitcoin slipped 9% over the next three weeks before climbing back up. August saw a similar period but a deeper 14% retracement.
FxPro’s Alex Kuptsikevich said in an email to CoinDesk that we could see a similar pullback into the $107,000-$115,000 range before the end of October, especially with the Fed’s rate decision on the 29th looming as a key macroeconomic marker.
“However, even attempts to move below the upper end of this range will raise concerns in the markets, with a crucial date on the horizon: the Fed’s policy rate decision on October 29,” he added.
This range now defines the balance between dip buyers and patient shorts. The derivatives market is less tense than it was last month, with CryptoQuant noting a sharp decrease in seller pressure.
Going forward, ETF flows would be the real test of whether spot demand is persistent or simply front-loaded.
The macro framework has not changed much. The US government shutdown extends into a second week, leaving investors in the dark on official data. Still, analysts say the uncertainty created by the shutdown favors assets with safe-haven appeal, such as gold and bitcoin. The yellow metal surpassed $4,000 this week.
For BTC, the key line remains $125,000. If you think about it, demand will probably absorb supply. Come back too quickly and we’ll likely be back in the $115,000 to $118,000 range.
Privacy shines
Privacy is being re-entered into the marketplace conversation in a way we haven’t seen in years. is up nearly 80% in one week and more than 400% since the end of summer.
, and smaller players like Railgun have also seen strong bidding, rallying up to 40% in the last 24 hours. This comes amid increasing activity on Near’s privacy messaging tools, renewed interest in tokens like Zcash, and plans by the Ethereum Foundation to support a research hub in the coming months, as reported.
