Bitcoin News Today: Bitcoin ETFs Command 6.78% of Market Cap as Price Hits $123K Record

Bitcoin's price surged to record highs amid robust institutional demand and surging inflows into spot Bitcoin exchange-traded funds (ETFs, as of October 2025, with the cryptocurrency trading near $123,000. Bitwise, a leading crypto asset manager, projected that Q4 2025 ETF inflows could exceed the $36 billion record set in the first year of Bitcoin ETFs, driven by broader institutional access and macroeconomic tailwindsCoindesk^[1]. Major wealth managers, including Morgan Stanley and Wells Fargo, expanded crypto allocation access for their 16,000+ advisers, unlocking new capital flows. These developments coincided with Bitcoin's price breaking above $125,000, fueled by the "debasement trade" as investors sought inflation hedges amid a 44% surge in U.S. money supply since 2020Coindesk^[1].

Institutional adoption intensified, with U.S. spot Bitcoin ETFs logging $25.9 billion in year-to-date inflows through October 9, including $3.5 billion in net flows during the first four trading days of Q4. BlackRock's iShares Bitcoin Trust (IBIT) emerged as a dominant force, absorbing $899.42 million in a single session on October 7, as ETFs collectively held $164.91 billion in total net assets. This influx reflects a structural shift, with ETFs now accounting for 6.78% of Bitcoin's market capitalizationMarkets.FinancialContent^[3].

Bitcoin's price action displayed consolidation between $121,000 and $123,000, supported by a daily inflow of $441 million into ETFs on October 3 aloneThe Financial Analyst^[2]. The cryptocurrency's supply dynamics are tightening: institutional demand via ETFs outpaces miner production, reducing the free float and mitigating deeper pullbacks. Technically, Bitcoin faces near-term resistance at $125,000–$126,000, with a break above this level potentially unlocking a rally toward $128,000–$130,000. On the downside, $117,000 is a critical support level, with further weakness probing $114,000 near the 50-day moving averageThe Financial Analyst^[2].

The altcoin market mirrored Bitcoin's strength, with Ethereum (ETH) reaching $4,502.39 and Solana (SOL) surging to $238. The total crypto market capitalization surpassed $4.3 trillion, up 91% year-over-year, driven by ETF-related liquidity and renewed speculative activityMarkets.FinancialContent^[3]. Analysts noted that Bitcoin's ETF-driven rally aligns with historical "Uptober" patterns, averaging 21% returns in October over the past decade.

Bitcoin's surge underscores its growing role as a portfolio diversifier and inflation hedge. With institutional demand absorbing more BTC than miners produce, the supply deficit historically precedes extended bull trends. Meanwhile, regulatory clarity in the U.S., including the GENIUS Act for stablecoins and pending CLARITY Act reforms, is fostering institutional confidence.