Bitcoin and Ethereum Ignite Digital Asset Market Rally Amid Surging ETF Investments

The digital asset market experienced a robust upswing on October 2, as accelerating fund inflows into Bitcoin (BTC) and Ethereum (ETH) spot exchange-traded funds (ETFs) fueled renewed investor optimism. Bitcoin gained 2.27% in just 24 hours, settling at $118,659 — its sixth consecutive day of positive movement. Ethereum mirrored this trend, climbing 2.35% to $4,384, representing a 9% gain over the previous week. Overall, global cryptocurrency market capitalization surged by 2.33%, reaching $4.07 trillion (KRW 5,716 trillion), pointing to broad market strength.

Investor sentiment across the crypto industry has improved notably. The Alternative Fear & Greed Index reflected this shift with a neutral reading of 51, indicating stabilized market sentiment. Moreover, the CMC20 Index, which tracks the performance of major digital assets excluding Bitcoin, gained 2.34%, closing at 258.86 points, showcasing strong momentum across a wide array of cryptocurrencies.

Renewed ETF Inflows Drive Market Momentum

A critical driver for the bullish sentiment was the substantial inflow of capital into cryptocurrency ETFs. On October 1, Bitcoin spot ETFs attracted impressive net inflows totaling $675.8 million (KRW 947.7 billion). Leading the charge were major funds like BlackRock's iShares Bitcoin Trust (IBIT), which secured $405.5 million (KRW 569.7 billion), and Fidelity BTC Trust (FBTC), which netted $179.3 million (KRW 251.4 billion).

Ethereum ETFs also reversed the outflows observed in late September, reporting net inflows of $80.89 million during the same period. This resurgence highlights growing investor confidence and a rekindled appetite for risk-sensitive assets, especially among institutional investors.

The CME futures market reflected the spot market's optimism. October Bitcoin futures climbed 1.11% to $119,595, while Ethereum October futures jumped 1.26%, closing at $4,421.5. Futures prices consistently maintained a premium over spot prices, corroborating heightened investor confidence in the continued rally.

Altcoins Surge as Memecoins and Layer-1 Tokens Outperform

The broader cryptocurrency market also witnessed widespread gains, with major altcoins contributing to the rally. Solana (SOL) surged 3.69%, trading at $224.35, while Dogecoin (DOGE) soared 6.52%, reaching $0.2574. Other noteworthy performers included XRP, which advanced by 2.47%, and TRON (TRX), registering a 1.26% increase.

Standout assets in the rising Layer-1 ecosystem further bolstered the market's uptrend. HyperLiquid (HYPE) posted a 4.65% gain, demonstrating exceptional recovery momentum. Stellar Lumens (XLM) climbed 5.39% to $0.3996, underscoring the growing strength of highly scalable blockchain networks. These gains reflect investor interest in diversified assets, including both established cryptocurrencies and emerging projects.

Macro Environment Fuels Risk Appetite

Global macroeconomic factors provided an additional tailwind for digital assets. Though yields on the U.S. 10-year Treasury note edged upward by 0.004 percentage points to 4.104%, they remained relatively stable, signaling a steady risk environment. Concurrently, the U.S. Dollar Index (DXY) fell 0.20%, closing at 97.144 — a weakening dollar that enhances the appeal of cryptocurrencies by improving their relative valuations against fiat currency.

This weakening of the dollar, combined with stability in Treasury yields, has facilitated greater risk-taking among investors, enabling a favorable climate for assets like Bitcoin, Ethereum, and the broader market.

Balanced Sentiment and Mixed Technical Indicators

Despite the ongoing rally, market sentiment remains cautious yet optimistic. The Relative Strength Index (RSI) for the overall cryptocurrency market reached 63.18, signaling proximity to overbought conditions. This suggests that short-term technical corrections could occur as the market consolidates recent gains.

The Alternative Fear & Greed Index remained unchanged at a neutral reading of 51, further reflecting widespread sentiment that balances cautious optimism with tempered expectations. Traders and investors continue to monitor technical indicators closely for potential overheating, underscoring the complexity of navigating this bullish phase.

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