Bitcoin reaches new all-time high during “Uptober” rally
Bitcoin experienced a significant surge recently, reaching a new milestone of over $125,500 on Saturday. This achievement comes not long after the cryptocurrency set its previous record, showcasing a remarkable growth of over 100% in the past year. Kyle Chassé, the founder of MV Global, pointed out that this latest all-time high is primarily being fueled by increasing interest from institutional investors.
Chassé mentioned that the continuous flow of funds into Bitcoin-based exchange-traded funds (ETFs) is a clear indicator of Wall Street’s involvement in the market. According to him, the current positive market sentiment, known as “Uptober,” is aiding in driving prices higher. Despite the prevailing uncertainties surrounding economic shutdowns and political factors, Bitcoin remains a popular choice among investors seeking a neutral and non-sovereign asset as a hedge against policy risks and currency devaluation. Chassé expressed optimism about the possibility of Bitcoin hitting $145,000 by the end of the year if ETF inflows maintain their current momentum.
Lucas Kiely, the founder of Future Digital Capital Management, urged caution during this phase of heightened euphoria in the market. He warned that overzealous trading practices fueled by extreme optimism could lead to increased leverage, resulting in significant price volatility and liquidation risks for traders. Kiely emphasized the importance of calculated risk-taking to avoid severe losses due to sudden market fluctuations.
On another front, Bitcoin ETFs witnessed a notable uptick in investor interest, with one of the leading funds, BlackRock’s iShares Bitcoin Trust, attracting inflows of $1.8 billion in the past week. This surge marked the second-highest weekly inflow since the ETF’s inception in January 2024. With $95 billion in assets under management, the iShares Bitcoin Trust continues to dominate the market, underscoring the growing institutional appetite for exposure to digital assets.
Despite the potential for increased volatility in the near term, experts remain optimistic about Bitcoin’s overall trajectory in the current bull cycle. The steady influx of institutional capital and the rising popularity of Bitcoin ETFs signal a broader acceptance of cryptocurrencies among traditional investors. As the market continues to evolve, navigating through the fluctuations and uncertainties will be crucial for investors looking to capitalize on the long-term growth potential of digital assets like Bitcoin.
