Bitcoin is holding steady around $122,000 after recently hitting a new high of $126,200, as strong institutional demand and a tightening supply continue to drive momentum. With over $60 billion flowing into Bitcoin ETFs since early 2024 and exchange balances dropping to a six-year low of 2.83 million BTC, market forecasts now eye a potential rally toward $140,000. Historically, October has been a bullish month for digital assets, reinforcing hopes for further gains. Analysts attribute this rise to major ETF inflows and massive withdrawals from centralized exchanges, which have limited selling pressure.
Broader market trends are also supporting Bitcoin’s upward trajectory. A positive outlook for the S&P 500 has boosted investor confidence, suggesting that optimism in traditional markets is spilling over into crypto. According to Augustine Fan of SignalPlus, options markets are pricing a small but notable chance of another 10% rally in the S&P 500 by year-end a sentiment that may encourage continued Bitcoin buying during this “Uptober” rally.
However, uncertainties remain. The ongoing U.S. government shutdown has paused key economic data releases, creating ambiguity around future Federal Reserve rate decisions. Analysts like Nick Ruck of LVRG Research warn that the lack of new data could distort investor expectations and expose the market to sudden corrections. Despite these risks, Bitcoin’s current resilience suggests confidence remains strong.
In the past 24 hours, Bitcoin has seen a slight 2% pullback, affecting major altcoins such as Ethereum ($4,498) and XRP, while BNB managed a 1.5% gain thanks to continued activity in its ecosystem. As volatility persists, investors remain cautiously optimistic, balancing the potential for new highs against the uncertainty of the macroeconomic backdrop.