Bitcoin is nearing its all-time high of $124,000 as spot Exchange-Traded Funds (ETFs) experienced remarkable growth, recording nearly $1 billion in inflows over five consecutive days. On October 3 alone, Bitcoin funds attracted over $985 million, marking a significant turnaround following a temporary downturn in September.
Ethereum ETFs also joined this bullish trend, garnering $234 million in inflows during the same five-day stretch. This momentum has propelled Ethereum’s price above the $4,500 mark, reflecting a 12% increase over the past week.
The recent inflows into Bitcoin ETFs indicate a resurgence in institutional interest, particularly after a brief lull. The shift in investor sentiment appears to have been catalyzed by a pullback in Bitcoin prices from $117,000 to approximately $108,600. Analysts at Swissblock described this price retracement as a “constructive reset” rather than a capitulation, suggesting that it reflects market stress rather than underlying fragility. They believe such resets can create new opportunities for investors.
Market analysts have pointed out that the absorption of selling at the upper price brackets is paving the way for a potential retest of prior highs. As of now, Bitcoin trades at around $122,000, just 1.6% below its record high. There is also a noticeable decline in selling activity from long-term holders, indicating a reduction in supply pressure and the initial signs of accumulation—often a precursor to market rallies.
On-chain data from CryptoQuant reveals a declining count of Unspent Transaction Outputs (UTXOs), currently at 166.6 million, marking the lowest level since April 2024 and an 11% decline from early 2025. This decrease hints at network consolidation and whale accumulation while retail activity appears to be dwindling. The drop in UTXOs, paired with the rise in Bitcoin’s price from $99,000 to $122,000, suggests that long-term holders are increasingly retaining their assets rather than selling.
In terms of derivatives, Bitcoin’s open interest has surged to a record $14.37 billion on Binance, surpassing the previous high of $14.31 billion seen in August. The rise in open interest, along with the price increase from $108,000 to $122,000 since late September, indicates that the current rally is being fueled by fresh inflows and newly established long positions rather than merely by short covering.
While analysts maintain a positive outlook regarding the current market structure, they caution that elevated open interest amid declining prices could lead to liquidations. For the time being, the market remains robust, supported by inflows and trading volume.
