Summary of this article
Bitcoin hits $120K, fueled by ETFs and safe-haven demand.
Ethereum, XRP, Solana post strong weekly gains amid momentum.
Experts optimistic, caution investors on volatility, growth potential ahead.
Bitcoin surged to $120,000 on Friday, reaching a new high after over seven weeks. The increase was driven by high inflows into US spot Bitcoin ETFs and safe-haven demand amid fears of a US government shutdown. Following this spike, the overall cryptocurrency market capitalisation now stands at approximately $4.14 trillion.
Bitcoin and Altcoins Continue Strong Gains
Currently, Bitcoin is trading at $120,266.39, up by 1.34 percent for the day, with a 24-hour trading volume of $72.12 billion that shows strong market activity and investor interest. Over the past week, Bitcoin has gained 9.86 per cent.
Altcoins also posted strong gains, with Ethereum up 2.00 per cent and a 7-day rise of 14.35 per cent on a $45.55 billion trading volume. XRP climbed 2.05 per cent, gaining 10.64 per cent over the week on $7.49 billion volume, while Solana surged 2.69 per cent, marking an 18.68 per cent weekly increase with a market capitalization of $9.13 billion.
What's Fueling the Bullish Momentum
Edul Patel, CEO of Mudrex, stated that the cryptocurrency market is seeing tremendous positive momentum, with Bitcoin trading above $120,000 and Ethereum reclaiming the $4,500 level. The rise has been fueled by a variety of causes that includes the 'Uptober' outlook, concern about a potential US government shutdown, significant whale inflows, and dismal ADP employment statistics. Also, Bitcoin ETFs recorded net inflows of over $1.6 billion this week while corporates like Metaplanet purchased 5,000 BTC which bolster market strength.
What's Ahead for Bitcoin
Crypto experts are optimistic about cryptocurrencies' near-term prospects, citing both growth potential and the need for caution.
Edul Patel noted that if Bitcoin breaks past $123,200, it can enter price discovery that make the way for new highs.
Sumit Gupta, Co-Founder at CoinDCX, has stayed positive on the future outlook for cryptocurrencies. He said, "Given the current momentum, Bitcoin and Ethereum are well-positioned for further growth. Bitcoin could test the $140,000–$145,000 range by year-end, supported by strong institutional participation and regulatory tailwinds, while Ethereum's outlook remains positive with network upgrades and increasing adoption."
He also cautioned that crypto remains a volatile asset, and investors should stay cautious and agile amid potential market swings.
Coinswitch noted that with September closing on a strong note, the Q4 outlook remains constructive, supported by Bitcoin ending four of the last five quarters in positive territory.
