Bitcoin Holds Above $120,000 Amid Crypto Market Caution
On friday, October 10, bitcoin maintained its position above $120,000. The broader crypto market showed slight caution, with a 0.9% dip in the total market cap. This reflects a wait-and-see attitude as key events approach later this month.
Spot Bitcoin ETFs continued thier positive trend, marking seven consecutive days of inflows. Though, Ethereum ETFs saw minor outflows. Analysts believe the U.S. dollar’s rebound and upcoming October events could cause short-term market volatility.
The global crypto market cap is now at $4.24 trillion, with trading volume over $202 billion in the past 24 hours. Bitcoin fell 0.8% to $121,159, while Ethereum dropped 2.1% to $4,321. Other major coins like BNB, XRP, and Solana also declined.
Open interest in crypto futures rose slightly to $220 billion, with total liquidations hitting $548 million.the Crypto Fear & Greed Index fell to 64, still in the “greed” zone, showing traders remain optimistic despite the pullback.
ETF flows show mixed trends. U.S. spot Bitcoin ETFs recorded $197.6 million in net inflows on October 9. But inflow volumes have cooled after peaking at $1.19 billion on October 6. U.S. spot Ethereum etfs saw net outflows of $8.54 million after eight days of inflows.
Analysts speculate that institutional traders are shifting capital back into Bitcoin ahead of major macro events. Bitcoin options worth $4.7 billion and Ethereum options worth $940 million are set to expire on October 10, which could cause short-term volatility.
Real Vision analyst Jamie Coutts noted that Bitcoin’s pullback is due to macroeconomic factors. The U.S. dollar index is rebounding,tightening global liquidity and putting pressure on risk assets.Coutts questions if this marks a new dollar cycle or just a setup for further decline.
Despite the dip, analysts are optimistic about “Uptober,” a historically strong month for digital assets. Key events include the U.S. consumer price index report on October 15, the SEC decision on Solana’s spot ETF on October 16, and the Federal Reserve meeting on October 30.
If Bitcoin stays above $120,000 and Ethereum near $4,500, traders expect a rebound toward $125,000 or higher. Many view this downturn as a healthy pause, not the end of Uptober’s bullish setup.
