For the first time since June, Bitcoin passed $70,000 on Monday. This will be its third time it has hit this figure. CoinMarketCap data showed that Bitcoin’s daily trading volume increased by 135% on Monday, which fueled investor optimism.
Bitcoin ETFs See Record Inflows, Fueling Price Rise
The surge appears linked to steady inflows into Bitcoin ETFs throughout October. According to SoSo Value, spot Bitcoin ETFs in the U.S. recorded a net daily inflow of $402.08 million on Monday alone. In October, these ETFs saw inflows in 15 days, adding over $3 billion in assets this month.
Analysts say this influx has kept Bitcoin’s market steady, despite last week’s dip to $65,000. The brief fall followed a report by The Wall Street Journal claiming Tether, the USDT provider, faced a federal investigation. Bitcoin recovered swiftly after Tether’s CEO dismissed the report, and BTC has been climbing since, culminating in today’s high.
Growing Demand in the U.S. Drives Market Trends
Recent data shows that US demand is becoming the main driver for the value of Bitcoin. The US-to-Rest Reserve Ratio-a measure of the relative size of US-held Bitcoin versus non-US-held-has been on a proverbial tear since the end of 2023. This same trend, responsible for Bitcoin’s ascent to $73,000 in March, further hinted at growing institutional investor interest.
Bitcoin’s dominance in the crypto market has also increased and reached 59% in October, up by 3.45% from the previous month. In any case, this underlines a reputation of cryptocurrency as a stable, attractive asset, primarily for institutional investors.
