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Digital Asset Market Surges Amid ETF Inflows and Declining Dollar Value
The cryptocurrency market experienced robust growth fueled by an influx of ETF investments and a weakening U.S. dollar. On October 3rd, the market capitalization rose by 1.24%, reaching $4.127 trillion. Bitcoin (BTC), the leader among digital assets, gained nearly 1% in the last 24 hours to trade at $11,9987, while Ethereum (ETH) advanced 1.6% to $4,461. Key indicators, such as the Alternative Fear & Greed Index, remained steady at a "neutral" level of 57. The Altcoin Season Index, however, climbed to 66, signaling stronger performance for altcoins compared to Bitcoin. Bitcoin’s and Ethereum’s relative strength index (RSI) stood at an average of 56.84, slightly above oversold territory.
ETF Inflows Propel Institutional Participation
Bitcoin ETF Momentum Accelerates
Institutional investors continued to pour funds into Bitcoin ETFs, marking a sixth consecutive day of net inflows. October 2nd saw a striking one-day addition of $466.5 million (approximately 656.7 billion KRW) to Bitcoin spot ETFs, boosting the total monthly inflows to $1.17 billion (around 1.647 trillion KRW). This steady investment underscores the growing institutional confidence in Bitcoin’s long-term prospects.
Ethereum ETFs Stage a Comeback
Ethereum ETFs also experienced a resurgence, attracting $177.1 million (approximately 249.3 billion KRW) in net inflows on the same day. This represents a sharp reversal of previous outflow trends seen earlier in the year. While Grayscale’s ETHE remains a major player, other Ethereum ETF products saw balanced and widespread investor interest, signaling renewed optimism for Ethereum-based assets.
Dynamics in the Derivatives Market
Bitcoin and Ethereum Futures Reflect Profit-Taking
Activity in derivatives markets hinted at short-term profit-taking. Bitcoin futures for October delivery on the Chicago Mercantile Exchange (CME) declined by 0.73% to $12,015, mirroring broader market sentiment. Ethereum futures also fell by 0.89%, closing at $4,496.5 amid active trading volumes, which totaled 3,033 contracts. However, contracts with longer expiration saw subdued activity, pointing to lingering technical sell pressure. Despite these minor corrections, institutional inflows into spot markets continued to reflect underlying strength for both assets.
Altcoin Highlights: Solana and Dogecoin Outperform
Solana Rockets by 17.4% Weekly
Solana (SOL) maintained its winning streak, gaining 2.6% over the last 24 hours to reach $230.4. The asset achieved an impressive weekly rise of 17.4%, reinforcing its growth as a Layer 1 protocol favored by developers and investors.
Dogecoin’s Steady Surge
Dogecoin (DOGE), the leading meme coin, climbed 0.6% within 24 hours and recorded cumulative weekly gains of 12.7%. Its sustained momentum reflects positive investor sentiment toward meme coins, especially amid broader market rallies.
Binance Coin, Ethereum, and XRP Show Strength
Binance Coin (BNB) advanced 5.97%, recovering to $1,097. Meanwhile, Ethereum added 1.63%, while XRP climbed by 2.25%, highlighting a general bullish trend for large-cap cryptocurrencies.
Sector-Wide Performances
Meme coins and Layer 1 tokens exhibited notable strength across the board. Sui (SUI) rose by 0.68% in a single day and achieved weekly growth of 13.3%. Avalanche (AVAX) gained 6.2%, showcasing improved sentiment in the altcoin segment. Tron (TRX), however, slipped slightly with a 0.3% decline, hinting at ongoing volatility within the market.
Macro Environment: Dollar Weakness and Stable Yields Drive Risk Appetite
U.S. Dollar Declines
A weakening U.S. dollar provided favorable tailwinds for cryptocurrencies. The U.S. Dollar Index (DXY) dropped 0.14%, settling at 97.365. This decline bolstered investor confidence in riskier assets, including digital currencies, amidst broader macroeconomic stability.
Treasury Yields Remain Stable
The yield on the U.S. 10-year Treasury note edged up slightly to 4.098%, maintaining overall stability. Analysts observed that consistent interest rates, along with a softening dollar, have contributed to heightened risk appetite among investors across global markets.
Conclusion
The cryptocurrency market demonstrated resilience and momentum on October 3rd, with strong institutional inflows and improved macro conditions driving gains across Bitcoin, Ethereum, and altcoins. While derivatives markets showed some profit-taking activity, spot market trends highlight growing investor confidence. With the ongoing strength of ETFs, surging altcoin performances, and supportive macro indicators, the digital asset market appears poised for sustained growth in the weeks ahead.
