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.
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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.
