Bitcoin reached $70,000 today for the first time in over four months. BTC daily trading volume has also jumped by nearly 135% on Monday, according to CoinMarketCap data.
This is only the third time that the largest cryptocurrency has hit the $70,000 mark, as it reached a new all-time high earlier this year.
Bitcoin ETFs Continue to Play a Critical Role
The price surge is likely driven by the constant net inflow in Bitcoin ETFs throughout October. According to data from SoSo Value , spot Bitcoin ETFs in the US saw a daily net inflow of $402.08 million on Monday.
In fact, Bitcoin ETFs have seen 15 days of positive inflow throughout October. Overall, more than $3 billion in assets have been added to the twelve ETFs this month.
Read more: What Is a Bitcoin ETF?
This surge in net inflow has largely contributed to keeping the BTC market largely stable in recent weeks, with a 6% gain in October. However, the token briefly fell to $65,000 last week after WSJ reported that USDT provider Tether was under federal investigation.
BTC recovered quickly after Tether’s CEO dismissed the claims , and it has been on an upward trend throughout the week – finally reaching $70,000 today.
“Forget the exact numbers. Focus on the big picture. In my opinion (and I can be wrong), Bitcoin will jump an order of magnitude in the 18 months after the halving, as it always did, based on stock-to-flow ,” influencer PlanB wrote in an X(formerly Twitter) post .
Recent data points to a growing US-based accumulation of Bitcoin as a key factor in its price trajectory. The US-to-Rest Reserve Ratio, an indicator that compares Bitcoin holdings by US entities to those held by non-U.S. institutions, was influential when the token surpassed $73,000 in March.
This ratio has been steadily increasing since Q4 2023, aligning with BTC’s price growth. It indicates a heightened demand for the cryptocurrency from institutional investors.
Read more: Bitcoin Halving History – Everything You Need To Know
BTC’s dominance within the crypto market continues to rise as well. It reached 59% in October, a 3.45% increase from the previous month. This trend reflects Bitcoin’s appeal as a resilient asset, especially for institutional buyers attracted by the token’s relative stability in the market.
