Asia Market Update: Bitcoin ETF Inflows Fuel Rally Above $123,000
Bitcoin (BTC) continues its impressive rally, trading above $123,000 during Thursday's Asian session as institutional demand and ETF inflows create strong bullish momentum. Market analysts highlight three key factors driving the current uptrend: record ETF inflows, mid-tier investor accumulation, and subdued profit-taking activity.
According to QCP Capital, capital is rotating from overextended AI equities into "credibility hedges" including Bitcoin and gold. Glassnode data shows ETF inflows reaching record levels while mid-tier accumulation is converting resistance into support. CryptoQuant analysis indicates on-chain profit-taking remains below historical peaks, suggesting further upside potential.
However, warning signs are emerging. Futures open interest has hit record highs with funding rates exceeding 8%, creating vulnerability to sharp corrections. Market structure appears "structurally bullish but tactically crowded" according to analysts, who note the market may require a leverage reset before continuing higher.
Glassnode's weekly report states the current pullback is testing leverage levels and resetting positioning. Despite high funding rates and growing open interest, institutional demand and the broader "debasement trade" narrative maintain bullish sentiment heading into October's seasonally strong period.
Major Asset Performance
BTC: Trading above $123,000 with steady institutional inflows supporting prices despite recent volatility. The $120,000 level now acts as crucial support.
ETH: Ethereum holds at $4,516 as traders rotate into major layer-1 assets. ETF inflows and anticipation of December's Fusaka upgrade provide fundamental support.
Gold: Reaches record high above $4,000 driven by geopolitical tensions and sustained central bank purchases, particularly from China.
Nikkei 225: Japanese index gains 1.1% led by SoftBank's 10% surge following acquisition news and positive economic policy expectations.