Bitcoin Hits Record High at $124,000 While Ethereum Gains; ETF Inflows Fuel Bullish Momentum

Bitcoin (BTC) reached a historic all-time high of $124,000, underscoring a period of extreme bullishness across the cryptocurrency market. Ethereum (ETH) also surged, reclaiming the $4,700 level with a 3% daily gain. Market-wide optimism was fueled by accelerated fund inflows into spot Exchange-Traded Funds (ETFs), marking the sixth consecutive trading day of such activity. On October 7 alone, $340 million streamed into ETFs, signaling robust institutional participation and heightened confidence in digital assets.

As of the afternoon trading session on October 7, Bitcoin was priced at $123,998, edging up 0.14% compared to the preceding day. Ethereum advanced by 2.52%, trading at $4,677.50. Other major cryptocurrencies also experienced substantial gains: Cardano (ADA) soared by 7.67%, Binance Coin (BNB) climbed 3.96%, and HyperLiquid (HYPE) rose 2.65%. The total cryptocurrency market capitalization increased by 0.35% to reach $4.25 trillion, while Bitcoin maintained its dominance at 58.1%, solidifying its position as the market anchor.

ETF Inflows Drive Market Resilience

Spot ETFs have emerged as a critical driver in sustaining the ongoing cryptocurrency rally. According to data from Passide Investors, Bitcoin ETFs registered net inflows of $220.1 million on October 6. Noteworthy contributions included $112.3 million into Fidelity’s FBTC, $60.1 million into Bitwise’s BITB, and $30.6 million into Grayscale’s GBTC.

Ethereum ETFs also showed robust activity, logging net inflows of $84 million. Leading participants included Bitwise’s ETHW ($27 million), Fidelity’s FETH ($23.5 million), and Grayscale’s ETH ($18.7 million). Both Bitcoin and Ethereum have enjoyed six consecutive trading sessions of ETF inflows, indicative of strong institutional interest and confidence in these assets.

Despite the bullish sentiment, the futures market showed minor corrections. Bitcoin futures traded on the CME closed down 1.31%, settling at $124,665 for October contracts. Similarly, Ethereum futures dipped by 1.30% to end at $4,702.50. Analysts attributed these declines to profit-taking activity as spot prices hit record peaks, reflecting a natural pause after sharp upward movements.

Macro Factors Set Positive Tone

Macroeconomic conditions further buoyed risk appetite in the cryptocurrency market. The U.S. 10-year Treasury yield rose marginally by 0.013 percentage points to 4.171%, signaling cautious optimism in traditional finance. The Dollar Index (DXY) also climbed, gaining 0.34% to reach 98.005, suggesting stability and easing of risk-off sentiment across broader markets.

Investor sentiment remained buoyant, as evidenced by the Alternative Fear & Greed Index, which held steady in the “Greed” zone with a score of 62. This reflects heightened risk-on behavior triggered by price recoveries and consistent ETF inflows. Both retail and institutional participants appear increasingly motivated by the growing mainstream acceptance of digital assets and the broader market’s recovery.

Institutional Engagement and Market Outlook

The influx of institutional funds into Bitcoin and Ethereum-focused ETFs highlights sustained interest in these marquee assets as viable investment options. With regulatory frameworks continuing to evolve and greater adoption by traditional financial services providers, the cryptocurrency sector is becoming increasingly attractive to asset managers and individual investors alike.

The broader macroeconomic backdrop further supports this momentum, as improving stability in traditional markets reduces perceived risk among investors seeking growth opportunities. However, potential headwinds—such as regulatory changes or geopolitical instability—still pose risks that could dampen the upward trajectory of the crypto market.

As long as institutional engagement remains strong and macroeconomic conditions conducive, the outlook for Bitcoin, Ethereum, and other major cryptocurrencies is likely to stay bullish. Investors will closely watch ETF trends, futures activity, and sentiment indicators as catalysts for future market movements.