- Bitcoin stabilizes at around $63,000 on Monday.
- US spot Bitcoin ETF experienced outflows week-on-week.
- NYDIG report highlights that Bitcoin remains the best-performing asset this year, with a 49.2% year-to-date gain.
Bitcoin (BTC) stabilizes at around $63,000 on Monday after finding support around its key level last week. Despite last week’s volatility, which saw BTC prices drop from a high of $65,618 to a low of $59,828, an NYDIG report reveals that Bitcoin remains the best-performing asset of the year with a 49.2% year-to-date gain, even as United States (US) spot Bitcoin Exchange Traded Funds (ETFs) saw week-on-week outflows.
Bitcoin sees a fall in institutional demand
Institutional flows to BTC declined last week compared to the previous. According to Coinglass data, the flow into US spot Bitcoin ETFs decreased from $1.10 billion in inflows to $262.8 million in outflows from the last week of September to the first week of October. This sharp decline in ETFs suggests that institutional investors’ demand is decreasing.
Total Bitcoin Spot ETF Net Inflow chart. Source: Coinglass
Following the US September’s Nonfarm Payrolls (NFP) release on Friday, that showed 254,000 new non-farm employments were created in September, surpassing the market expectation of 140,000 by a wide margin, and the Unemployment Rate edged lower to 4.1% from 4.2% in August, Crypto asset trading firm Capital QCP’s Friday report said that despite prior month’s dismal print, the strong data reflects a robust labor market in the US. The report stated, “We believe the recent positive macro data supports our view of the long-awaited “Uptober” trend.”
Furthermore, according to historical Bitcoin’s monthly returns, BTC generally yielded positive returns for traders in October, with an average of 21.01%, giving it the name “Uptober.” Coinglass historical Bitcoin’s monthly returns chart flipped green after surging above $63,000 on Monday. This could be an optimistic sign for Bitcoin.
Bitcoin Monthly return (%) chart. Source: Coinglass
New York Digital Investment Group (NYDIG) reported last week that Bitcoin remains the best-performing asset this year, with a 49.2% year-to-date gain.
Different types of assets year-to-date returns chart. Source: NYDIG
Moreover, the report explains that Bitcoin’s rolling 90-day correlation with US stocks continued to rise during Q3, ending the quarter at 0.46. While Bitcoin’s correlation with equities rose, the most recent level is still low, implying that Bitcoin offers significant diversification benefits to multi-asset portfolios. Thinking of Bitcoin as a “levered US equities” is incorrect as the long-term average of its 90-day rolling correlation is only 0.12.
Bitcoin correlation chart. Source: NYDIG
The report also mentions that the upcoming US election on November 5 will play a big part in market performance for Q4, and if Trump wins, expect larger gains in the crypto market. “We expect to see a change in the head of the SEC, with Gensler being replaced with someone likely to be more pro-crypto. Q4 is traditionally a bullish period for BTC, and there are a number of catalysts that could see history rhyme.” said the report
Technical Analysis: BTC bounces from $60,000 support level
Bitcoin price retraced last week, and support was found at the 200-day Exponential Moving Average (EMA), around $60,000, on October 2. It rose 3.5% in the following four days and broke above the $62,125 resistance level. As of Monday, BTC extends recovery and trades above $63,000.
If the $62,125 holds as support, BTC could extend the rally to retest its psychological level of $66,000.
The Relative Strength Index (RSI) on the daily chart is trading at 53, just above its neutral level of 50, indicating indecisiveness among the traders. For Bitcoin’s strength to be sustained, the RSI must rise above its neutral level and continue rising.
BTC/USDT daily chart
However, if the $62,125 level fails, BTC could decline to retest its 200-day EMA level at $60,000.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin, Ethereum and XRP defend key support on sixth day of Israel-Iran war, what to expect
Bitcoin (BTC), Ethereum (ETH), and XRP are holding steady above key support levels. The top three cryptocurrencies have weathered the geopolitical tension and macroeconomic events of the past week.
Top Meme Coins Price Prediction: Dogecoin, Shiba Inu, Pepe set to extend losses
Top meme coins extend recent losses on Wednesday, with the segment’s market capitalization standing at $54.41 billion, a decline of over 20% in the past month. Dogecoin (DOGE) and Shiba Inu (SHIB) are down 3% so far this week.
Crypto Today: Bitcoin, Ethereum, XRP weather geopolitical tensions, risk-off sentiment ahead of Fed rate decision
The cryptocurrency market is broadly consolidating amid ongoing geopolitical tensions in the Middle East. Bitcoin (BTC) mirrors the lethargic sentiment, trading at around $104,572 at the time of writing on Wednesday.
Stellar and ApeCoin Price Prediction: XLM and APE at risk of further losses as technical weakness grows
Stellar price closes below its critical support at $0.2537, hinting at a correction ahead. ApeCoin touches the lower boundary of an ascending triangle formation, a breakdown would signal a downtrend.
Bitcoin: BTC could slump to $100K amid Trump-Musk tussle
Bitcoin (BTC) tumbled to a low of $101,095 on Friday amid volatility in the market. The effect of the tussle between United States (US) President Donald Trump and Tesla Chief Elon Musk negatively influenced the NASDAQ and Tesla's stock price on Thursday, although both are recovering on Friday.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.