Uptober: Bitcoin and Gold Rising

Rise in Bitcoin and Gold Markets

Bitcoin (BTC) gained value during the US government shutdown. It reached $116,400 with an increase of approximately 3% in the last 24 hours. The broader crypto market rose by 3.5% as measured by the CoinDesk 20 index.

Stock markets outside the US are also rising. Europe’s STOXX 50 index increased by 0.3%, and the FTSE 100 by 0.7%. However, S&P 500 futures fell by 0.55%, and NASDAQ futures by 0.64%.

The US government shutdown is expected to cause delays in economic data. This process, combined with customs tariffs on various goods, has led investors to turn to alternative stores of value. This uncertainty caused gold prices to rise by 3.75% in the last week, reaching $3,890.

Strong Interest in Crypto ETFs

As of September 30, spot crypto ETFs saw net inflows exceeding $550 million. Spot Bitcoin ETFs accounted for a large portion of this figure. The shift towards alternative assets is occurring against a positive macroeconomic backdrop.

The Federal Reserve is expected to cut interest rates this month. Polymarket investors predict a 25 basis point cut with an 85% probability. This situation could make risky assets, including cryptocurrencies, more attractive to investors.

Institutional participation has deepened with evolving monetary policy. BlackRock’s iShares Bitcoin Trust (IBIT) surpassed Deribit to become the largest Bitcoin options trading platform by open interest, approaching a total of $38 billion.

New Investment Opportunities in Uptober

Dom Harz, co-founder of Bitcoin DeFi network BOB, said, “This Uptober, we will see a more targeted flow. Investors will want to utilize their Bitcoin assets more.” Incoming information indicates the emergence of a new trend focused on generating yield from Bitcoin investments.

Today, Swiss-based digital bank Sygnym launched a new fund called BTC Alpha Fund, which aims to generate yield without diminishing Bitcoin price movements.

During the largest US government shutdown since the start of the COVID-19 pandemic, incoming data can cause market fluctuations. However, a series of new spot ETF decisions are expected in the crypto market in the coming days.