October Kicks Off with Strong Gains in Digital Asset Market, Sparking Optimism for "Uptober"

The digital asset market began October with notable gains, reinforcing hopes for "Uptober," a historically favorable month for cryptocurrencies. On October 1, Bitcoin (BTC) surged 2.35% to $116,189, successfully reclaiming critical technical support levels, while Ethereum (ETH) rose 2.79% to $4,289, as both leading assets showcased synchronized upward momentum. The global market capitalization for digital assets expanded by 2.41%, hitting $3.99 trillion (approximately 5,605 trillion Korean won), reflecting renewed bullish sentiment. Concurrently, Alternative's Crypto Fear & Greed Index stood at 42, indicating neutral investor sentiment.

Institutional Inflows Drive Growth in ETFs and Futures

Fueling the market rally was robust institutional inflow into cryptocurrency exchange-traded funds (ETFs) and bullish trends in futures markets. Data from Passived Investers revealed that cumulative net inflows into Bitcoin ETFs reached $429 million (approximately 602.7 billion won) by October 1. BlackRock's IBIT led the charge with $199.4 million (around 280.1 billion won), followed by Fidelity's FBTC ($54.7 million or 76.8 billion won), Bitwise's BITB ($70.1 million or 98.5 billion won), and Ark Invest's ARKB ($105.7 million or 148.5 billion won).

Ethereum ETFs also experienced heightened interest, amassing $127.5 million (approximately 179.1 billion won) in net inflows, spearheaded by BlackRock’s ETHA fund. Analysts attributed this institutional activity to quarter-ending portfolio rebalancing and growing adoption of cryptocurrency ETFs, which bolstered sentiment across the market and fueled Ethereum's continued upward movement.

Optimism Reflected in Futures Market Activity

The positive outlook extended to futures markets, particularly on the Chicago Mercantile Exchange (CME), where Bitcoin futures showed strong activity. October contracts settled 1.72% higher at $117,165, while November contracts rose 1.68% and December contracts gained 0.98%. Expanding short-term basis spreads in futures markets signaled an increased optimism for higher spot prices. Additionally, trade volume for Bitcoin futures climbed to 1,298 contracts, highlighting growing institutional and high-net-worth trader involvement in the market.

Favorable Macro Conditions Enhance Risk Appetite

Emerging macroeconomic tailwinds supported the digital asset market's upbeat behavior. The yield on U.S. 10-year Treasury bonds remained steady at 4.156%, while the Dollar Index (DXY) softened by 0.18% to 97.22. The dollar's mild retreat boosted demand for dollar-denominated risk assets like cryptocurrencies, encouraging broader inflows into Bitcoin and altcoins. These macroeconomic trends created a favorable environment for renewed risk-on behavior among investors.

Leading Large-Cap Coins Sustain Gains

Most large-cap cryptocurrencies recorded gains on October 1. Solana (SOL) surged 4.21% to reclaim $216, while XRP advanced 2.12%, trading at $2.91. Dogecoin (DOGE) delivered standout performance, surging 4.80% to break past $0.24. Other Layer-1 assets also rallied, including Cardano (ADA, up 4.49%), Chainlink (LINK, up 3.91%), and Avalanche (AVAX, up 5.10%).

HyperLiquid (HYPE) led the short-term price action across the market, soaring 7.28%. Meanwhile, Tron (TRX) posted a modest rise of 0.05%, effectively remaining flat, and USDC dipped 0.01%, making it the only stablecoin to show minor losses. Some tokens that experienced sharp intraday gains began facing profit-taking pressure, which tempered their upward trajectory.

Market Trends: Layer-1 Assets Shine While Meme Coins Stay Quiet

Layer-1 protocols and infrastructure-focused assets spearheaded the rally, showcasing robust performance relative to other sectors. In contrast, meme coins and exchange tokens witnessed comparatively muted price volatility. Market-wide recoveries of technical benchmarks further drove buying interest, while institutional inflows and bullish futures positioning acted as short-term catalysts for upward momentum.

Neutral Sentiment Keeps Investors Cautiously Optimistic

Investor sentiment in the crypto market held steady, with Alternative's Crypto Fear & Greed Index remaining unchanged at 42, signaling a neutral outlook amid cautious optimism. Despite the neutral sentiment, market participants are closely monitoring October developments as institutional involvement deepens and macroeconomic conditions continue to provide support.

The combination of strengthening institutional participation and favorable external factors paints a promising picture for cryptocurrencies in October. If these trends persist, digital assets may sustain their upward trajectory, bolstering the market as "Uptober" unfolds.