Crypto rally continues as Bitcoin nears $64,000 amid ETF inflows

Bitcoin (CRYPTO:BTC) and Ether (CRYPTO:ETH) continued their upward momentum for a third straight day, supported by strong inflows into spot exchange-traded funds (ETFs), according to a weekend report by QCP Capital.

Bitcoin surged, retesting the $64,000 mark, while Ether reclaimed $2,500, signaling growing investor confidence in the cryptocurrency market.

QCP Capital's analysis emphasised the substantial capital inflows into spot ETFs.

Over a two-day period, Bitcoin ETFs attracted $250.30 million in net inflows, while Ether ETFs saw a more modest $8.10 million.

These large inflows have significantly contributed to the rally, bolstering both Bitcoin and Ether prices.

Despite the current rally, QCP Capital’s analysis cautioned that crypto prices could experience a short-term pause.

With no significant macroeconomic events expected until Friday’s PCE price report, the initial euphoria around potential rate cuts is starting to fade.

Additionally, the analysis noted a decline in short-term Bitcoin volatility, with front-end BTC volatility dropping by six points from its peak the day prior.

This reduction in volatility could signal a temporary cooling of the market.

However, October, often referred to as "Uptober" due to Bitcoin’s historical performance, is fast approaching.

QCP sees opportunities for investors, particularly in Bitcoin win-range options, given the seasonal trend.

According to the firm’s metrics, Bitcoin has already risen 6.87% by mid-September 2024, and historical data shows that nine of the last eleven Octobers have seen significant gains for the leading cryptocurrency.

With ETF inflows continuing and historical trends supporting further gains, Bitcoin and Ether are well-positioned to maintain their upward trajectory.

At the time of reporting, the Bitcoin price was $62,870.49, while the Ethereum price was $2,585.37.