Bitcoin News Today: Bitcoin ETFs Outpace Miners, Fuel $120K Surge as Institutional Demand Rises

Bitcoin Surpasses $120,000 Amid Significant ETF Inflows

Bitcoin (BTC) surged past $120,000 on October 2, 2025, driven by record inflows into U.S. spot Bitcoin exchange-traded funds (ETFs). On September 30 alone, Bitcoin ETFs recorded $675.8 million in net inflows, the strongest single-day inflow since September 10. This momentum extended a three-day streak of inflows, with cumulative weekly inflows exceeding $1.6 billion. BlackRock's iShares Bitcoin Trust (IBIT) led the charge, attracting $405.5 million, propelling its total net inflows to $61.37 billion and assets under management (AUM) to nearly $90.9 billion. IBIT now ranks among the top 20 U.S. ETFs, with analysts projecting it could enter the top 10 by 2026 if inflows remain robusttitle10^[10].

The inflow surge reflects deepening institutional adoption of Bitcoin as a macro-asset. U.S. spot Bitcoin ETFs now hold $155.9 billion in assets, with ETFs absorbing supply at over 2.7x the rate of new Bitcoin issuance post-halving. Over the past four weeks, inflows equated to the purchase of approximately 112,000 BTC, compared to 41,400 BTC mined in the same periodtitle10^[10]. This supply shock dynamic has intensified upward pressure on Bitcoin's price, which gained 8.2% weekly and over 20% month-to-date.

Ethereum ETFs also saw inflows, though on a smaller scale. Ethereum ETFs added $80.9 million in September, with Fidelity's FETH and BlackRock's ETHA leading contributions. However, Ethereum's market share remains dwarfed by Bitcoin, as IBIT alone holds more than triple the combined assets of all Ethereum ETFstitle10^[10]. Analysts note that while Bitcoin dominates as a store of value, Ethereum's role in diversification strategies is growing as institutions allocate across multiple blockchains.

Macroeconomic factors amplified the inflow trend. The Federal Reserve's September rate cut shifted allocator positioning, with markets pricing in two additional cuts by year-end. A weaker U.S. dollar, driven by disinflationary data and delayed economic reporting due to the government shutdown, further fueled safe-haven flows into Bitcoin. Analysts highlight that Bitcoin is uniquely positioned to absorb both "digital gold" demand and high-growth risk appetite, a dual narrative that few assets can replicatetitle10^[10].

Technical analysis suggests Bitcoin faces critical resistance at $120,000–$122,000, a level that has historically capped upside movement. A breakout could target $124,500 and $128,000, while support lies at $115,800–$116,000. Momentum indicators, including the RSI at 59, indicate constructive conditions, though overbought territory remains a potential trigger for corrections. Futures data on CME show rising open interest and institutional participation, with ETF creation and redemption windows increasingly dictating price discoverytitle10^[10].

Looking ahead, analysts project sustained inflows could see quarterly ETF net inflows reach $18.5 billion, retiring up to 161,000 BTC-nearly four times miner output. If positive catalysts align, including further Fed easing and regulatory clarity, Bitcoin could aim for $150,000–$200,000 over the next few months. However, risks persist, including potential tightening by central banks, large ETF redemptions, or cascading futures liquidationstitle1^[1].

The U.S. remains the global leader in Bitcoin ETF adoption, with inflows accounting for 100% of $44.2 billion in crypto ETP inflows in 2024. Canada, the first country to launch a spot Bitcoin ETF, recorded $707 million in outflows in 2024 as investors shifted to more liquid U.S. alternativestitle11^[11]. This trend underscores the U.S. market's dominance, driven by institutional familiarity, liquidity, and regulatory progress.