Bitcoin Reaches $70,000 for the First Time in 4 Months as ETFs Continue to Play a Critical Role in Price Movements

BTC's daily trading volume has also jumped by nearly 135% on Monday, according to CoinMarketCap data.

Bitcoin price hit $70,000 for the first time in over four months today.

BTC daily trading volume also jumped by nearly 135% on Monday, data from CoinMarketCap showed.

This marks only the third time that the largest cryptocurrency has hit the $70,000 price point, having hit a new all-time high earlier this year.

Bitcoin ETFs Continue to Drive Price Movements

The price surge is likely being driven by the continuous net inflows into Bitcoin ETFs throughout October. Spot Bitcoin ETFs in the United States saw a daily net inflow of $402.08 million on Monday, data from SoSo Value showed.

In total, Bitcoin ETFs have now seen 15 days of positive inflows throughout October. The twelve ETFs have seen over $3 billion in assets added this month.

This surge in net inflows has helped to keep 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 a WSJ report that USDT provider Tether was under federal investigation.

Bitcoin recovered quickly after Tether’s CEO dismissed the claims, and it has seen an uptrend 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 suggests that a growing US-based accumulation of Bitcoin was 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, which aligns with BTC’s price growth and indicates a higher demand for the cryptocurrency from institutional investors.

BTC’s dominance within the crypto market also continued to rise, reaching 59% in October, a 3.45% increase from the previous month.

This trend reflects Bitcoin’s appeal as a resilient asset, particularly for institutional buyers who are attracted by the token’s relative stability in the market.

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