Massive Capital Influx into Bitcoin and Digital Assets
CoinShares believes this surge represents a delayed reaction to the Federal Reserve’s (FOMC) interest rate cut, compounded by a disappointing ADP employment report and growing concerns about a potential U.S. government shutdown. These factors have fueled a strong buying wave, pushing the total assets under management (AuM) in digital assets to $254 billion.
The “Digital Asset Fund Flows Weekly” report highlighted a broad-based bullish trend:
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Ethereum attracted $1.48 billion, bringing its year-to-date total to $13.7 billion, nearly three times higher than last year.
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Solana set a new weekly record with $706.5 million in inflows, raising its 2025 total to $2.58 billion.
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XRP drew $219.4 million, while smaller altcoins also saw gains — Sui ($3.4 million), Chainlink ($1.5 million), Litecoin ($1.2 million), and Cardano ($0.5 million).
In contrast, multi-asset products were the only category to see outflows of $23.5 million during the week.
U.S. Leads the Pack as Global Optimism Grows
Investor optimism was evident across regions. The United States led with $5.0 billion in inflows — a new all-time weekly record. Switzerland followed with $563 million, while Germany posted its second-highest weekly total at $312 million.
Other markets also reported gains: Canada ($32.1 million), Australia ($6.3 million), Hong Kong ($5 million), and Brazil ($4.8 million). Sweden, however, stood out as an exception with $8.6 million in outflows.
October Momentum and Signs of a Potential Breakout
Looking ahead, QCP Capital projects a strong yet cautious outlook for Bitcoin as the market gears up for a potential October breakout. Major whales appear to have either completed their portfolio rotations or are holding steady, waiting for momentum to unfold.
Leveraged traders continue to chase the rally, with BTC-PERP funding rates remaining elevated — 35% on Deribit and 29% on Hyperliquid — signaling aggressive long positioning. However, such high leverage levels pose the risk of sharp liquidations, as seen two weeks ago when $3 billion in long positions were wiped out, creating opportunities for institutional entry.
In the options market, traders who were short end-October calls have raised their strike targets to the $126K–$128K range as spot prices continue to climb. While some argue that Bitcoin’s recent surge lacks clear catalysts, supportive narratives remain strong:
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Bitcoin is reasserting its status as a safe-haven asset amid U.S. political instability.
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The cryptocurrency is outperforming gold in relative returns.
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And October’s historically bullish seasonality adds to the optimism.
Notably, Bitcoin balances on centralized exchanges have fallen to their lowest levels in six years, further strengthening bullish signals for the market’s next upward phase.
