BTC continues to hit a new record of over $126,000 yesterday afternoon.
Crypto Markets continued to rise steadily, rising 0.5% today on October 7th, holding its total market capitalization of around $4.4 trillion. Bitcoin (BTC) is trading at $124,755, down just 1.1% from the new all-time high of $126,080, which reached Monday afternoon.
Ethereum (ETH) rose 3.4% today to $4,746, bringing its weekly profit to nearly 14%. Of the top 10 altcoins by market capitalization, BNB continues to lead the pack with 24-hour profits, increasing by more than 8% a day, pushing the price to $1,329, making it the third largest cryptocurrency by market capitalization. XRP fell about 0.7% to $2.98, while Solana (Sol) lost 1.2% to $231.
Within the top 100 assets by market capitalization, Plasma (XPL) rose 13%, while ZCASH (ZEC) was the biggest loser, down 11.6%.
As Bitfinex analysts explained in their weekly update, the main factor behind Bitcoin’s rebound was “a rapid reduction in selling pressure,” adding that the late summer correction was “mainly driven by short-term holders’ capitulation and heavy whale distribution, consistent with the profits after the Fed’s initial cut.”
Meanwhile, GlassNode analysts in an X post state that Bitcoin’s cost-based distribution “has thin support between 121k and 120k to 120k and 120,000, and there is a major cluster near 117K where around $190,000 in BTC was last won.”
In a market update, analysts at Coinbase Institutional wrote that the outlook for October is “tactically bullish” and “creates a favorable market setup for Crypto” as the Fed’s policy bias against US dollar softness, short-term global liquidity impulses, and insurance cuts. They added:
“If it wasn’t for Hawkish’s surprise, I think these conditions will increase the odds of BTC-driven upside down until November, when liquidity headwinds appear.”
Liquidation, ETFs, and macros
More than $354 million leveraged positions have been settled over the past 24 hours, according to Coinglas. ETH led the wipeout with a liquidation of over $81 million, followed by BTC of $69.8 million, with other Altcoins totaling nearly $45 million.
On Monday, October 6, Spot ETFS saw a net inflow of over $181.7 million, pushing its managed total assets to $32.03 billion, according to SoSoValue. Spot Bitcoin ETFS recorded a massive inflow of $1.21 billion in net inflow yesterday. This is the largest daily total of the year.
On the macroeconomic front, as the US government shutdowns do not allow fresh formula numbers to come out, investors and policymakers are reading work, inflation and growth, leaning towards personal “shadow” data from companies like Carlisle and ADP, Reuters reports.
According to EY, the closures are beginning to hit the economy, earning around $7 billion a week of losses, or around 0.1 points to around 0.1 points of annual quarterly GDP growth.