The cryptocurrency market has stormed past the $4 trillion threshold, erasing memories of September’s brutal liquidations that briefly dragged valuations below $3.9 trillion. Bitcoin surged 2.4% to trade above $114,500, while Ethereum climbed 3.0% past $4,200, with total market capitalization advancing 1.7% as investor confidence returned following turbulent weeks.
Trading volumes reached $173 billion over 24 hours as the Crypto Fear & Greed Index recovered to neutral territory at 50, up from 40 last week. Market data shows open interest jumped 1.5% to $202 billion, though $314 million in positions faced liquidation as traders adjusted to higher price levels.
Institutional Money Drives Recovery
Exchange-traded fund (ETFs) activity sparked the rally, with September 29 witnessing over $1 billion in combined Bitcoin and Ethereum ETFs inflows. Ethereum funds attracted $546 million, breaking a five-day redemption streak, while Bitcoin ETFs captured $521 million after two days of outflows.
Regulatory developments amplified positive sentiment. The SEC eased crypto ETF approval rules, prompting Bloomberg analyst Eric Balchunas to rate Solana ETF approval odds at 100%. The CFTC proposed allowing stablecoins as derivatives collateral, while SWIFT expanded blockchain integration with over 30 banks.
Historical October seasonality supports continued gains, with analysts eyeing $150,000 Bitcoin by year-end if liquidity conditions persist.
