Bitcoin News Today: Bitcoin ETFs Surge, Fueling $3.2B Inflows and Liquidity Cascades

Bitcoin's potential to surpass its all-time high of $124,461 has triggered warnings from market analysts, with Coinglass data indicating that mainstream centralized exchanges (CEXs) could face cumulative short liquidation intensity of $81.15 million if the threshold is breached. This scenario underscores the heightened leverage and positioning dynamics in the cryptocurrency market, as institutional and retail investors navigate a rapidly evolving landscape shaped by ETF inflows and macroeconomic tailwinds.

Recent weeks have seen robust inflows into U.S.-listed spot Bitcoin ETFs, with cumulative net inflows reaching $3.24 billion in early October 2025. This marks the second-highest weekly inflow since the ETFs' inception in January 2024, driven by renewed optimism around potential U.S. Federal Reserve rate cuts and Bitcoin's integration into institutional portfolios. BlackRock's iShares Bitcoin Trust (IBIT) led the charge, amassing $791.55 million in a single session, while the total net assets of Bitcoin ETFs now exceed $164.5 billion, accounting for 6.74% of Bitcoin's total market capitalization.

The surge in ETF demand has directly influenced Bitcoin's price trajectory, pushing it above $123,996 in early October-a six-week high. This momentum aligns with historical patterns of Bitcoin's "Uptober" phenomenon, where the asset has historically delivered an average 20% return during the month. Analysts at Standard Chartered and Coinglass project Bitcoin could test $135,000 to $135,000 in the near term, citing sustained ETF inflows and reduced selling pressure from long-term holders. However, short-term volatility remains a risk, with Coinglass highlighting that a decline below $123,000 could trigger $474 million in long liquidations.

The liquidation data reflects broader structural shifts in Bitcoin's market dynamics. Coinglass notes that higher liquidation clusters-such as the $81.15 million threshold-signal concentrated leverage, increasing the likelihood of sharp price reactions as positions are forcibly closed. This liquidity cascade could amplify Bitcoin's volatility, particularly as ETFs and institutional holdings continue to absorb newly mined Bitcoin, reducing circulating supply and intensifying demand.

Market participants are closely monitoring regulatory and macroeconomic developments. The approval of spot Bitcoin ETFs in early 2024 marked a turning point, validating Bitcoin as a mainstream asset and enabling it to compete with traditional safe-haven investments like gold. However, the U.S. government shutdown has delayed regulatory clarity for altcoin ETFs, potentially limiting diversification opportunities for investors seeking exposure beyond Bitcoin. Meanwhile, the SEC's streamlined approval process for crypto products suggests a more accommodating regulatory environment, though uncertainties persist.

Long-term projections remain bullish, with institutions like Standard Chartered and Ark Invest forecasting Bitcoin to reach $150,000 to $250,000 by 2025–2026. These forecasts hinge on sustained ETF inflows, post-halving supply constraints, and Bitcoin's adoption as a hedge against inflation and traditional market risks. The 2024 halving, which reduced miner rewards by 50%, has already tightened supply, a factor historically correlated with price surges.

[1] Bitcoin ETFs Fuel Record Inflows, Propelling Market Towards New ... (https://www.financialcontent.com/article/marketminute-2025-10-4-bitcoin-etfs-fuel-record-inflows-propelling-market-towards-new-all-time-highs)

[2] Bitcoin ETFs Surge $3.2B in Inflow as "Uptober" Month Unfolds (https://www.cryptotimes.io/2025/10/04/bitcoin-etfs-surge-3-2b-in-inflow-as-uptober-month-unfolds/)

[3] Bitcoin Price Nears All-Time High with $985M ETF Inflows (https://coinpedia.org/news/bitcoin-price-nears-all-time-high-with-985m-etf-inflows/)

[6] Bitcoin Alert: Coinglass Warns $81.15M Short Liquidation If BTC ... (https://en.coinotag.com/breakingnews/bitcoin-alert-coinglass-warns-81-15m-short-liquidation-if-btc-tops-124461-474m-long-liquidation-risk-below-123000-on-major-cexs/)

[12] Bitcoin Price Prediction 2024, 2025-2030 and Beyond - XS (https://www.xs.com/en/blog/bitcoin-price-prediction/)