bitcoin Traders remain optimistic about steadier price increases in the coming weeks, even as profit-taking dented a recent rally that set new records.
The top 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 of the last 7 days, SOL de Solana, , and Cardano’s ADA fell as much as 3%, CoinDesk data shows.
The weak tone in BTC belies the continued demand for US-listed spot ETFs. This week, ETFs have attracted $2.72 billion in inflows, which traders say marks the asset’s emerging role as a digital hedge alongside gold, which itself broke the $4,000 per ounce barrier this week.
Those numbers are hard to ignore, especially now that the Federal Reserve has been more dovish after its rate cut in September.
However, pauses have been common during recent rallies. After peaking in July, bitcoin fell 9% over the next three weeks before rising. August saw a similar period but a deeper 14% pullback.
FxPro’s Alex Kuptsikevich said in an email to CoinDesk that we could see a similar pullback into the $107,000 to $115,000 range before October is over, especially with the Federal Reserve’s rate decision on the 29th looming as a key macro marker.
“However, even attempts to move below the upper limit of this range will cause concern in markets, with a crucial date on the horizon: the Federal Reserve’s key rate decision on October 29,” he added.
That range now defines the balance between dip buyers and patient short sellers. The derivatives market is less tense than last month, and CryptoQuant noted a sharp decrease in seller pressure.
Looking ahead, ETF flows would be the true test of whether spot demand is sticky or simply concentrated at the beginning.
The macro framework hasn’t changed much. The US government shutdown extends into its second week, leaving investors in the dark about official data. Still, according to analysts, the uncertainty created by the closure 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 it is worked on, demand will probably absorb supply. If we pull back too quickly, we will probably go back to the $115,000 to $118,000 area.
Privacy shines
Privacy has re-entered the market conversation in a way we haven’t seen in years. It has increased almost 80% in a week and more than 400% since the end of the summer.
, and smaller players like Railgun have also received strong bidding, rising up to 40% in the last 24 hours. This comes amid growing activity in Near privacy messaging tools, renewed interest in tokens like Zcash, and the Ethereum Foundation’s plans to support a research group in the coming months, as reported.