Bitcoin Rises 3% as Shutdown-Driven Dollar Weakness Fuels $675M ETF Inflows

Bitcoin surged 3% today as investors rotated into digital assets amid the ongoing U.S. government shutdown, which has weighed heavily on the dollar. The renewed capital shift has injected fresh optimism into the market, setting the stage for the king coin’s possible push toward new record highs.

ETF Flows Signal Institutional Return
Spot Bitcoin ETFs recorded net inflows of $675.81 million yesterday, their highest level in weeks. This marks a sharp rebound from last week’s $900 million outflows, signaling a notable revival of institutional demand. The shift reflects how investors are positioning against dollar weakness, with BTC once again standing out as a hedge.

Trader Sentiment Turns Positive
Santiment data shows Bitcoin’s Weighted Sentiment climbing steadily, now at 2.27. This metric, which tracks the tone of online discussions, highlights a strong shift toward bullish narratives. Unlike the volatile swings of the prior month, the current steady uptick points to growing confidence that could sustain the rally.

Next Test: $120K Resistance
If inflows and sentiment momentum continue, Bitcoin could attempt to breach the critical $120,144 resistance, opening the door to retesting its all-time high of $123,731. However, a failure to maintain demand may drag the asset back below $115,892.

As October progresses, BTC’s historic “Uptober” trend adds another layer of optimism, with many eyeing whether the king coin can capitalize on the perfect mix of institutional inflows and market confidence to break new ground.