Weekly Update: 10th of October
What happened between the 3rd and 10th of October?
- Bitcoin surged to a new all-time high above 126,000 dollars last week, before retracing toward 120,000 dollars in a healthy post-rally market correction. Read more
- Institutional demand grows as ETF inflows accelerate, with more than 1.2 billion dollars entering Bitcoin ETFs in a single day on October 6. Read more
- JP Morgan forecasts Bitcoin could reach 165,000 dollars, while Morgan Stanley recommends a strategic crypto allocation of 2 to 4 percent for diversified institutional portfolios. Read more
- Luxembourg’s sovereign wealth fund allocates 1 percent to Bitcoin, becoming the first European government entity to officially include BTC as part of its investment strategy. Read more
Bitcoin pulls back after reaching new all-time high
Bitcoin surged past the 126,000 dollar mark last week, setting a new all-time high, driven in part by significant ETF inflows. Following the rally, the price corrected to around 120,000 dollars, a natural movement after strong upward momentum. The market is currently consolidating in a healthy structure, forming higher lows and higher highs across key timeframes. This setup suggests strong potential for continuation of the bullish trend. Beyond Bitcoin, several altcoins are also showing renewed signs of strength, indicating broader market participation and momentum building across the digital asset landscape.
ETF record inflows: Nearly 1.2 Billion dollars inflow in one day
On October 6, U.S. spot Bitcoin ETFs recorded nearly 1.2 billion dollars in net inflows, marking their largest single-day performance since launch. BlackRock’s fund attracted the lion’s share with over 970 million dollars. Over the course of the week, nearly 6 billion dollars flowed into crypto-related ETFs, with more than 3.5 billion allocated specifically to Bitcoin. These inflows highlight the rising institutional demand for regulated exposure to crypto assets and reinforce Bitcoin’s role as the primary entry point for traditional investors into the digital asset space.
Traditional institutions see strong growth for Bitcoin and crypto allocations
Major financial institutions are becoming more vocal about the strategic value of digital assets. JP Morgan estimates that Bitcoin could reach 165,000 dollars within a year based on a volatility-adjusted comparison to gold.
Meanwhile, Morgan Stanley recently recommended a crypto allocation of 2 to 4 percent for institutional portfolios, depending on the investor’s risk appetite. Their guidance ranges from 2 percent for Balanced Growth to 4 percent for more Opportunistic Growth strategies.
Luxembourg sovereign fund adds Bitcoin to balance sheet
Luxembourg’s Intergenerational Sovereign Wealth Fund has announced it will allocate 1 percent of its portfolio to Bitcoin ETFs. This makes it the first sovereign fund within the Eurozone to formally include Bitcoin exposure on its balance sheet. The fund’s updated investment policy allows for up to 15 percent of assets to be allocated to alternative investments, including crypto.
While the allocation is modest in size, the move carries significant symbolic weight. It signals governmental recognition of Bitcoin as an investable asset class and may set a precedent for other sovereign funds to follow in their allocation strategies.
In other digital assets news
- After years of absence, BNB appears to be back in full force. The token surged over 25% this month alone, alongside growing blockchain activity.
- The total number of stablecoins in circulation has risen to over 300 billion dollars, an increase of approximately 50% since the beginning of January this year.
Sign up for our newsletter to stay on top of the digital assets market.
