Bitcoin News Today: Institutional ETFs Propel Bitcoin Past $125K as 'Debasement Trade' Gains Momentum

Bitcoin surged to a new all-time high above $125,000 in early October 2025, driven by record inflows into U.S. spot Bitcoin exchange-traded funds (ETFs). According to data from SosoValue, these ETFs recorded $3.24 billion in net inflows during the week ending October 4, marking the second-largest weekly inflow since their January 2024 launch. This follows a $985.08 million inflow on October 3 alone, the largest single-day inflow since January 6, 2025. The rally coincided with Bitcoin's price reaching $124,400, just shy of its previous peak of $124,400 set in August 2024. The ETFs now hold 6.74% of Bitcoin's total market capitalization, which has surpassed $2.448 trillion, underscoring their growing role in the cryptocurrency's liquidity and institutional adoption.

BlackRock's iShares Bitcoin Trust (IBIT) dominated the inflow surge, capturing $791.55 million on October 3, reinforcing its position as the largest institutional custodian of Bitcoin with $93 billion in assets under management. Fidelity's Wise Origin Bitcoin Fund (FBTC) added $69.58 million, while other major players like Ark 21Shares and VanEck's HODL also reported significant contributions. The total trading volume in Bitcoin ETFs surged to $7.52 billion, with net assets reaching $164.50 billion. This represents a 14% month-to-date increase in ETF assets, reflecting sustained institutional demand.

The inflows are being fueled by macroeconomic factors, including expectations of a Federal Reserve rate cut and a weakening U.S. dollar. The odds of a rate reduction in October rose above 90% following weaker-than-expected labor data, prompting investors to shift capital into Bitcoin and gold as hedges against inflation and fiscal uncertainty. JPMorgan analysts described the trend as the "debasement trade," with Bitcoin's 30-day correlation to gold rising to 0.64, the highest since April 2023. Meanwhile, its correlation to the Nasdaq 100 fell to 0.28, signaling a decoupling from traditional equities.

Analysts project further gains, with BlackRock's Eric Balchunas noting that ETF inflows have transformed Bitcoin's demand dynamics. Standard Chartered and JPMorgan anticipate Bitcoin reaching $135,000–$165,000 by year-end, driven by ETF adoption and supply compression. Institutional ETF custodians withdrew 37,000 BTC from exchanges in the week of heavy inflows, reducing liquid supply to pre-ETF levels. With the next halving event in April 2026, daily issuance will halve from 900 BTC to 450 BTC, amplifying the impact of each billion-dollar inflow on market equilibrium.

Technical indicators support the bullish momentum. Bitcoin reclaimed the $120,000 level and breached the 20-day and 50-day moving averages, with the RSI (14) at 73 indicating overbought conditions. Key resistance lies at $125,000, with Fibonacci extension targets at $135,000–$138,000. Immediate support is at $120,000, followed by $117,000 and $113,500. The CME Bitcoin futures open interest hit $8.6 billion, the highest since 2021, while Deribit options data show increased demand for call options above $125,000, reinforcing the market's short-term bias.

The ETF-driven rally has broader implications for Bitcoin's institutionalization. Since their launch, U.S. spot Bitcoin ETFs have accumulated $58.44 billion in net inflows, with BlackRock and Fidelity controlling over 60% of total volume. Vanguard, previously skeptical, is reportedly reconsidering its stance on crypto ETFs under new leadership, potentially unlocking access for 50 million customers. Global adoption is expanding, with European and Asian ETPs adding $500 million in AUM in September. If the Fed cuts rates in November, as priced at 78% probability, the ETF-driven rally could extend into early 2026.

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

[2] Bitcoin ETFs See Largest Weekly Inflows of 2025 as ... (https://coingape.com/bitcoin-etfs-see-2025-record-weekly-inflows-of-3-2b-as-btc-eyes-new-ath/)

[3] Spot Bitcoin ETF Volume Tops $5B as Price Breaks $120K - Crypto ... (https://cryptonews.com/news/spot-bitcoin-etf-volume-tops-5-billion-as-price-breaks-120k-ath-next/)

[4] Bitcoin ETF Inflows Hit $3.24B: BTC Nears $124K as "Uptober" ... (https://www.tradingnews.com/news/bitcoin-btc-usd-etf-inflows-soar-to-3-24b-usd)

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

[6] Bitcoin Price Crosses $120,000 as ETFs Cause Market Surge (https://www.analyticsinsight.net/bitcoin/bitcoin-price-nears-120040-as-etf-inflows-boost-market-momentum)