[Analysis] "Bitcoin retests the $120,000 level… taking a breather amid ETF inflows"

Doohyun Hwang

Summary

It reported that Bitcoin briefly fell below the $120,000 level due to short-term profit-taking.
U.S.-listed spot Bitcoin ETF inflows have been steady, keeping the market's medium-term optimism intact.
It analyzed that if ETF net inflows continue, the short-term correction can be seen as a process of reconfirming buying demand.

Bitcoin (BTC) was pushed down by short-term profit-taking and briefly fell below the $120,000 level. However, with steady ETF inflows, the market's medium-term optimism remains intact.

On the 9th (local time) in the Binance Tether (USDT) market, Bitcoin fell intraday to $120,000 before trading around $121,650. Ethereum (ETH), ranked second by market capitalization, fell 2.4% over 24 hours to $4,371, and major altcoins such as Solana (SOL), XRP (XRP), Dogecoin (DOGE), and Cardano (ADA) also fell by up to about 3%.

Despite this weakness, U.S.-listed spot Bitcoin ETFs saw net inflows of $2,720,000,000 this week alone. Market participants say Bitcoin is emerging as a new 'digital hedge(hedge)' asset alongside gold. Gold prices also surpassed $4,000 per ounce, reaching an all-time high.

That day, Alex Kuptsikevich (Alex Kuptsikevich), FxPro senior analyst, told CoinDesk, "Bitcoin may undergo a correction in the $107,000~$115,000 range ahead of the Federal Reserve (Fed)'s interest rate decision at the end of October," adding, "however, if buying flows come in firmly in that range, another attempt to break through $125,000 will follow."

On-chain analytics firm CryptoQuant said, "Selling pressure in the derivatives market has eased compared to last month," and analyzed, "If ETF net inflows continue, the short-term correction can be seen as a process of reconfirming buying demand."