Bitcoin News Today: Bitcoin ETFs Attract $3.55B as Investors Hedge Dollar Debasement

Bitcoin reached an intraday high above $126,000 in early October 2025, driven by record inflows into U.S. spot Bitcoin ETFs, declining real yields, and a weakening U.S. dollar. The rally, fueled by a "debasement trade" as investors sought protection against currency devaluation, has positioned Bitcoin as a macro hedge asset alongside gold. However, the price has since consolidated near $121,000, with analysts closely monitoring whether it can sustain momentum above the $126,000 threshold Reuters^[1].

Spot Bitcoin ETFs have been a primary catalyst, with BlackRock's IBIT and Fidelity's FBTC reporting multibillion-dollar inflows. Global crypto ETFs attracted $5.95 billion in the week ending October 4, 2025, with Bitcoin ETFs alone capturing $3.55 billion. These flows reflect sustained institutional and retail demand, though experts caution that liquidity at new highs remains fragile The Block^[2].

Macro factors continue to influence Bitcoin's trajectory. Real U.S. yields have eased to ~1.80%, while the U.S. Dollar Index (DXY) has retreated to 101.9–102.5, down from the 105 range in August. This environment supports Bitcoin's appeal as a non-yielding hard asset, though rising real yields or a stronger dollar could pressure the price The Guardian^[3].

Technical analysis highlights key levels. Bitcoin has traded in a tight range of $119,700–$123,600, with the 200-day EMA near $112,000 acting as critical support. A sustained breakout above $126,000 could target $135,000–$138,000, while a failure to defend $119,500 risks a correction toward $115,000 Economic Times^[4]. On-chain data shows strong accumulation, with the MVRV ratio for short-term holders at 1.45, below historical danger zones of 1.7 that have preceded market tops Financial Content^[5].

Scenarios for Bitcoin's near-term movement remain split:

- : Sustained ETF inflows, weak USD, and falling real yields could push BTC toward $135,000–$200,000 by year-end.

- : Moderate flows and stable macro conditions may see Bitcoin trade between $95,000–$140,000.

- : Rising yields, dollar strength, or regulatory shocks could trigger a 50% drawdown to $70,000–$95,000 Reuters^[1].

Bitcoin futures open interest surged to $91.59 billion by October 5, 2025, signaling record institutional participation. However, leveraged positions remain a risk, with $600 million in liquidations reported in recent sessions. A veteran trader also placed a $438 million short bet on Bitcoin, indicating cautious bearish sentiment Coinedition^[6].

Regulatory developments, including the U.K.'s lifting of a retail crypto ETN ban, and macroeconomic events like the U.S. government shutdown, add layers of uncertainty. Meanwhile, corporate adoption, including Luxembourg's sovereign wealth fund allocating 1% to Bitcoin ETFs, reinforces its legitimacy as a store of value TradingNEWS^[7].