Bitcoin traded steadily on Tuesday, consolidating after touching a new all-time high above $126,000 in the previous session. The cryptocurrency’s rally was fueled by robust inflows into U.S. spot Bitcoin exchange-traded funds (ETFs), investor hedging amid Washington’s prolonged budget impasse, and seasonal optimism surrounding “Uptober,” a historically bullish month for crypto assets.
As of 02:05 ET (06:05 GMT), Bitcoin (BTC) rose 0.4% to $124,427.90, extending last week’s 10% surge. The token had peaked at $126,186.00 on Monday before trimming gains on mild profit-taking.
Data from SoSoValue revealed that U.S. spot Bitcoin ETFs drew $3.2 billion in net inflows during the week ending October 3—the second-highest weekly total since their inception. On October 3 alone, inflows reached roughly $985 million, underscoring rising institutional interest in Bitcoin as a long-term portfolio hedge.
ETF Inflows and ‘Debasement Trades’ Drive Momentum
Institutional demand through ETFs has given Bitcoin’s rally a structural boost, allowing large investors to gain exposure without direct custody. The appeal has been heightened by political uncertainty and fears of a weakening dollar amid the ongoing U.S. government shutdown.
Market participants have increasingly turned to Bitcoin as part of “debasement trades,” reallocating capital from fiat currencies to hard assets such as gold and digital tokens in anticipation of inflation and potential monetary easing.
Adding to the bullish tone is “Uptober”, a term coined within the crypto community referring to Bitcoin’s historically strong performance in October. Analysts note that in the past five years, Bitcoin has posted positive monthly returns in four of them during October.
Key factors supporting Bitcoin’s resilience:
- $3.2 billion ETF inflows in early October
- Inflation-hedging amid prolonged U.S. shutdown
- Positive seasonal trend known as “Uptober”
- Institutional adoption via regulated ETFs
Altcoins and Industry Moves Boost Sentiment
Beyond Bitcoin, the broader cryptocurrency market saw selective gains. Ethereum (ETH) climbed 4.1% to $4,712.75, while XRP rose 0.5% to $2.99. Cardano and Polygon added 3.5%, and Dogecoin jumped 5%, maintaining its meme-driven momentum.
Meanwhile, Galaxy Digital (TSX: GLXY) unveiled GalaxyOne, a commission-free stock and crypto trading platform aimed at rivaling Robinhood (NASDAQ: HOOD). The announcement lifted Galaxy shares 7%, while Robinhood slipped 3%. The move underscores the growing convergence between traditional finance and digital assets as competition intensifies in the retail trading space.