Bitcoin traders are feeling hopeful about a more stable price trajectory in the weeks ahead. This optimism persists even as recent profit-taking has impacted a rally that recently set new records. At one stage during overnight trading, the cryptocurrency, which holds the highest market value, dropped to $120,000, pulling down the overall market. Meanwhile, Ethereum fell by 2.4% in the last 24 hours, wiping out gains from the previous week. Other cryptocurrencies like Solana’s SOL and Cardano’s ADA have also seen declines, indicating a broader downturn.
The current weakness in Bitcoin appears at odds with the sustained interest in US-listed spot ETFs, which have gained $2.72 billion in inflows. This suggests that Bitcoin is beginning to be seen as a digital hedge, similar to gold, which surpassed $4,000 per ounce this week. These trends are significant, particularly in light of the Federal Reserve’s recent dovish stance following an interest rate cut in September.
It’s not unusual for rallies to experience pauses. After peaking in July, Bitcoin saw a 9% drop over the following three weeks but eventually rebounded. A similar pattern occurred in August, but that pullback was even larger at 14%. Analysts from FxPro, particularly Alex Kupczykevich, have noted that a decline into the $107,000-$115,000 range might occur by the end of October, especially with the Federal Reserve’s upcoming interest rate decision on the 29th presenting a crucial macro indicator.
Kupczykevich also mentioned that any attempt to drop below the higher end of this range could raise concerns in the market as that key date approaches. Currently, this range reflects a balance between bullish buying and patient selling, while seller pressure in the derivatives market has notably eased.
Looking forward, ETF flows will serve as a crucial test for the persistence of demand. The macroeconomic environment remains relatively unchanged, with the ongoing US government shutdown leaving investors without key official data. Yet, this uncertainty seems to favor assets that are perceived as safe havens, like gold and Bitcoin. For Bitcoin, a significant line to watch is around $125,000; if it crosses that threshold, demand might start to outweigh supply. Conversely, a rapid retraction could pull it back to the $115,000-$118,000 range.
Privacy Becomes a Hot Topic
Privacy is experiencing a notable resurgence in discussions, reminiscent of earlier years. ZEC, for example, has soared nearly 80% within a week and has more than quadrupled since late summer. Similarly, XMR has also shown significant growth. Additionally, smaller players like Railgun are seeing strong gains, increasing by about 40% in just 24 hours. This heightened interest comes alongside a renewed focus on Near’s privacy messaging tool and plans by the Ethereum Foundation to support related research in the coming months.
