Bitcoin News Today: Institutional Frenzy and Rate Cut Bets Send Bitcoin Beyond $120K

Bitcoin surged past $120,000 in early October 2025, reaching an all-time high of $125,646, driven by a confluence of institutional inflows, Fed rate cut expectations, and bullish market sentiment. U.S. spot Bitcoin ETFs recorded a record $3.24 billion in net inflows for the week ending October 3, marking the largest weekly inflow of 2025 and the second-highest since their launch in early 2024. BlackRock's iShares Bitcoin Trust (IBIT) led the charge, capturing $791.55 million in inflows on October 3 alone, pushing its total assets under management to $93.95 billion. The ETF's dominance extended to options markets, where its open interest surpassed Deribit's Bitcoin options for the first time, reaching $38 billion.

The rally was fueled by a broader rotation of capital into crypto assets amid expectations of further Federal Reserve rate cuts. The odds of a 25-basis-point rate cut at the October FOMC meeting rose above 90% following weaker-than-expected ADP employment data. JPMorgan analysts highlighted a "debasement trade," with investors flocking to Bitcoin and gold as hedges against inflation and macroeconomic uncertainty. Meanwhile, ETF inflows accounted for 6.7% of Bitcoin's total market capitalization, with net assets in Bitcoin ETFs reaching $164.5 billion. This institutional demand was further amplified by BlackRock's recent filing for a Bitcoin Premium Income ETF, a covered-call strategy designed to generate yield on Bitcoin holdings.

Technical analysis reinforced the bullish momentum. Bitcoin's price action on weekly charts showed a systematic pattern of consolidation followed by impulsive advances, with current levels near the upper boundary of the "Price Discovery Uptrend 3" phase. Key resistance levels at $128,000–$135,000 were identified as potential targets, contingent on sustained volume and support above $110,000. Analysts at Standard Chartered and Citi projected year-end price targets of $135,000 and $132,000, respectively, citing continued ETF inflows and institutional adoption. JPMorgan's more aggressive forecast of $165,000 by year-end factored in macroeconomic tailwinds and the ongoing "debasement trade".

The ETF-driven rally also spurred broader market activity. Total Bitcoin ETF trading volume exceeded $7.5 billion on October 3, with BlackRock's IBIT accounting for 74.5% of the activity. Ethereum ETFs, while trailing Bitcoin in inflow magnitude, also saw $1.06 billion in four-day inflows, led by BlackRock's ETHA with $485 million. However, Bitcoin's dominance in the ETF space remained unchallenged, with BlackRock's IBIT holding 746,810 BTC-3.88% of the total supply. The ETFs' growing influence extended to derivatives markets, where Bitcoin options open interest reached record levels, signaling heightened speculative and hedging activity.

Market participants remain cautiously optimistic despite short-term volatility. While Bitcoin's 10% weekly gain from late September lows positioned it for a potential "Uptober" rally-a historical pattern of strong October performance-analysts warned of potential pullbacks if the price fails to hold above $115,000. The broader crypto market, with a total capitalization exceeding $4.21 trillion, reflected a shift in investor sentiment, with Bitcoin dominance dropping below 59% and capital rotating into altcoins like Solana (SOL) and BNB (BNB). However, Bitcoin's ETF-driven momentum continued to anchor the market, with institutions and retail investors alike treating it as a strategic asset amid shifting macroeconomic conditions.

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[2] title2 (https://coinpedia.org/news/bitcoin-price-nears-all-time-high-with-985m-etf-inflows/)

[3] title3 (https://coingape.com/bitcoin-etfs-see-2025-record-weekly-inflows-of-3-2b-as-btc-eyes-new-ath/)

[5] title5 (https://cryptonews.com/news/spot-bitcoin-etf-volume-tops-5-billion-as-price-breaks-120k-ath-next/)

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[12] title12 (https://markets.financialcontent.com/worldnow/article/marketminute-2025-10-4-altcoin-autumn-solana-and-bnb-lead-the-charge-as-emerging-cryptos-promise-explosive-returns-in-q4-2025)