Investors are keeping close track of the Bitcoin news, especially amid the US Government Shutdown, which has turned investors cautious.
However, Bitcoin (BTC USD) price has recorded a robust rally today, soaring past the brief $116,000 mark.
Many market pundits have also cited the soaring institutional interest in the flagship crypto as another potential reason behind the rally.
For context, the US Spot Bitcoin ETF has recorded an influx of nearly $1 billion through the first two days of the week.
Meanwhile, the latest US government shutdown has fueled concerns over the release of the US nonfarm payrolls data scheduled for later this week.
This data is a crucial metric that the US Federal Reserve considers while deciding its policy rate plan.
Having said that, the investors are now cautious about the next course of action of the central bank in their upcoming gathering.
In addition, the investors were eagerly awaiting the upcoming labor market data, after the US JOLTS Job Openings data came in slightly higher than anticipated.
Despite that, the recent performance of the digital assets, led by Bitcoin price, hints that traders are shifting focus towards riskier assets. On the other hand, it seems that the “Uptober” optimism has further bolstered the market sentiment.
Bitcoin News: US Spot Bitcoin ETF Fund Flow in Focus
In the latest Bitcoin news, the investors’ focus appears to be shifting towards the soaring institutional interest in BTC USD.
According to Farside Investors data, the US Spot Bitcoin ETF has recorded an inflow of $947.9 million through the first two days of the week.
On the last day of September, the investment instrument saw an influx of $429.9 million, led by BlackRock IBIT’s $119.4 million fund flow. This rebound in the fund flow into Bitcoin ETF has bolstered traders’ confidence, especially after the choppy last week.
Meanwhile, the US Spot Bitcoin ETF recorded a combined outflow of $897.6 million last week. Only on September 24, the inflow totaled $241 million.
This regaining of institutional confidence might have helped in the recent Bitcoin (BTC USD) price gains.
In addition, the uncertainty after the US government shutdown might have also helped investors to lean towards safer havens like Bitcoin and gold.
Bitcoin Price Soars, Analysts Hint at Sustained Rally
BTC price today was up nearly 3% in the last 24 hours and traded at $116,312 during writing. It has reached a 24‑hour high of $116,438 from a low of $112,740, reflecting the highly volatile scenario in the market.
However, the trading volume over the 24‑hour period remains muted at $62 billion. Notably, the latest gains pushed Bitcoin (BTC USD) price up by 3% in the weekly chart, while its monthly gains were recorded at 7%.
Derivatives data also suggest a sustained investors’ interest in Bitcoin. CoinGlass data showed that BTC Futures Open Interest rose 3% to $83 billion in the last 24 hours, while soaring around 2.3% in the four‑hour time frame.
Amid this, analyst Michael van de Poppe has shared an interesting take on BTC. According to the expert, Bitcoin price may retest the $112k region again before an “immediate bounce upwards.”
Besides, citing the positive performance of BTC price in Q4, he indicates that the crypto might reach $120k in the final quarter. This comes as the market is already bracing for the “Uptober” rally.
Usually, Bitcoin price tends to offer positive returns during October. According to CoinGlass data, BTC offers an average return of 20% in October.
So, considering the robust Bitcoin ETF inflow and “Uptober” optimism, it seems that the crypto is poised for a robust rally ahead.
However, the macroeconomic factors, like the latest US government shutdown, might continue to impact the broader market sentiment.