Hola DDians! While we were away, Bitcoin and crypto markets put their September losses behind them to start “Uptober” with a bang. The final quarter of the year is officially here. And like past bull seasons, this time too, the timing is ripe for a mega rally. What we are curious to see is how far upwards the market will go, rather than when. The stories below will provide crucial insights to help you ride this ultra-green wave like a pro. Read on!
Here’s what we have for you in this issue:
- Bitcoin is on 🔥
- So is ETH 😎
Bitcoin logs a new all-time high. 🚀
Bitcoin undid the bear-driven damage done during sleepy, sad September in the first week of October.
The BTC/USD pair surged more than 12% amid U.S. government shutdown risks, renewed ETF inflows, and rising safe-haven demand.
Macro pressures are mounting. Whales and institutions are accumulating.
$130,000 looks closer than ever.
Source: @lookonchain
The benchmark cryptocurrency surged from around $112,000 to a new all-time high of $125,506, marking its sharpest three-day rally since March.
U.S. Government Shuts Down, Bitcoin Turns Safe Haven 😌
Bitcoin’s upward move coincided with a U.S. government shutdown that began on October 1, following a congressional standoff over federal funding.
Why? Investors sensed imminent political and fiscal uncertainty.
As a result, perceived safe-haven assets, such as gold and Bitcoin markets, experienced significant inflows of capital.
Gold hit a new record above $4,000 per ounce, trading at $4,040.
Bitcoin also broke out immediately post the shutdown confirmation.
Markets are calling this move the “debasement trade”—a rotation into scarce assets as faith in government spending and the dollar wanes.
As per the CME FedWatch Tool, the probability of a Federal Reserve rate cut in October jumped from 89% to 98% immediately after the shutdown was confirmed.
The market now expects four additional rate cuts by mid-2026.
If realized, those cuts could further weaken the dollar, thereby prodding investors to push more capital into Bitcoin.
Japan Adding Fuel to the Fire
Japan’s next Prime Minister, Sanae Takaichi, is in favor of strong fiscal stimulus.
Her stance contrasts with her predecessor’s more hawkish tone and has weakened the yen—indirectly boosting dollar-denominated Bitcoin prices.
ETFs Still In the Game
Outflows are seeing a serious slowdown. Again.
Spot Bitcoin and Ethereum ETFs recorded one of their strongest weeks of inflows this year.
Data from SosoValue shows that Bitcoin ETFs attracted $3.24 billion last week, reversing the $902 million in outflows seen the week prior.
Ethereum ETFs followed with $1.3 billion in inflows after $795 million in outflows the week before.
Whales Lapping Up BTC Like There’s No Tomorrow
Whales have begun accumulating again.
On-chain data from Lookonchain revealed that a newly created Bitcoin wallet withdrew 620 BTC (worth $76 million) from Binance.
In comparison, another address moved 26,029 ETH ($118 million) from Kraken—signaling that whales are shifting assets into self-custody for long-term holding.
Overall, exchange balances have dropped to their lowest level since early 2021, with only 2.85 million BTC remaining on centralized exchanges.
Over 170,000 BTC were withdrawn in the last 30 days alone.
Source: @btconexchanges
We all know what this means. Bullish confidence has returned in Bitcoin and crypto markets.
But analysts expect volatility to persist as traders digest macro developments and ETF inflows.
A short-term pullback to $120,000 remains possible before the next leg upwards.
If momentum holds and ETF inflows continue, Bitcoin could test $130,000 before mid-October.
Ether (ETH) Eyes: $5,000 🤑
The $5,000 price mark is not so far for the ETH/USD pair. \
Especially after the pair hit an all-time high of $4,952 in late August.
Institutional demand is surging. Ethereum ETF inflows are swelling. ETH exchange supply is plummeting.
Rising ETF Inflows
Here’s what data from Farsight Investors revealed:
- Ethereum funds pulled in $176.6 million on Monday alone.
- Net inflows swelled up to a weekly total of $1.48 billion, according to CoinShares.
- It was one of the largest single-week ETF inflow streaks since launch, suggesting fresh allocations from institutional desks.
Fusaka Upgrade Will Fuel Another Rally
Ethereum’s Fusaka upgrade is scheduled for November:
- The update introduces parallel execution in the Ethereum Virtual Machine.
- This is a long-awaited improvement that will significantly enhance network throughput and reduce congestion during peak demand.
- It will lay the groundwork for the next phase of DeFi and tokenization growth, where performance and interoperability become the network’s defining edge.
- Ethereum developers have confirmed that testing is complete and that the rollout is on schedule for Q4.
Source: @MerlijnTrader
Ether Exchange Reserves Fall to 16-Month Low
Data from Binance shows that Ethereum’s exchange supply ratio has dropped to 0.034, its lowest since May 2024.
Now here’s the thing with declining exchange supplies (for any coin):
- Indicates coins are moving into cold storage or long-term wallets, reducing the liquid supply available for sale.
- Periods of declining exchange supply often precede major price rallies, especially when trading volumes remain stable.
- ETH’s current accumulation pattern is consistent with pre-bull-run behavior.
- If the supply ratio rebounds above 0.038, it could suggest renewed profit-taking. For now, the balance between supply and demand signals continued accumulation.
12.5 Million ETH Locked Up in Corporate Treasuries
ETH’s institutional adoption looks more promising than ever.
Data shows:
- Institutional crypto treasuries and spot Ether ETFs now hold over 12.48 million ETH (more than 10 percent of the total circulating supply).
- Treasury firms are home to 5.66 million ETH (4.68 percent of supply), while ETFs collectively account for 6.81 million ETH (5.63 percent).
- BitMine Immersion and SharpLink Gaming have come up as the top institutional accumulators in the ETH treasury game.
- Both followed Bitcoin-style treasury strategies by accumulating ETH to diversify reserves.
- SharpLink recently reported unrealized gains exceeding $900 million since launching its Ethereum treasury in June.
Supportive Macroeconomic Fundamentals
With loose monetary policies across the world and a weakening U.S. dollar, risk-on sentiment has gone through the roof.
The U.S Federal Reserve switched to a dovish outlook after a year, which in turn fueled one of the strongest equity rallies in 15 years.
The shift of capital toward digital assets and emerging markets is quite visible.
And with its rising popularity, ETH will power the next wave of institutional adoption through DeFi, stablecoins, and tokenized real-world assets.
Ether has surged 75 percent over the last 90 days, outpacing Bitcoin and the broader crypto market.
With all pointers above remaining intact, $5,000 is not just possible; it is inevitable.
When that will happen remains to be seen. Our hopes are high, and ETH bags are loaded to the brim.
We suggest you do the same.
In a nutshell, the entire crypto market is primed up to explode higher. The above stories were just a teaser involving the top 2 crypto coins—BTC and ETH. Bullish parameters in other altcoins also point to an imminent rally.
The market will provide opportunities for everyone to make it big this time.
Stay patient and fine-tune your senses to identify the upcoming rewarding scenarios and profit targets.
We hope to return with even juicier stories in our next issue. Stay tuned.
Ciao 👋
