FX168 Financial News Agency (Asia-Pacific) reported that at the start of the Asian trading session on Thursday (October 9), Bitcoin attempted to stabilize above $122,000 amid ETF inflows and mid-tier asset accumulation, seeking to end a three-day losing streak. However, analysts warned that high leverage could lead to volatility in Bitcoin. Meanwhile, driven by geopolitical tensions and central bank demand, particularly from China, gold prices surged to a new all-time high above $4,000.

Bitcoin is currently trading at $122,000, showing a steady recovery from this week’s pullback as ETF inflows and whale accumulation continue to support prices. While short-term momentum has weakened, institutional demand and the broader narrative of ‘currency devaluation trades’ remain supportive of an uptrend, entering the seasonally bullish period of October.

(Source: coindesk)

Ethereum is currently trading at $4,516, stabilizing after recent volatility, as traders return to major first-layer assets. Market sentiment is buoyed by robust ETF inflows, optimism surrounding the December Fusaka upgrade, and renewed focus on staking and DeFi yields.

(Source: coindesk)

Analysts noted that Bitcoin’s technical charts resemble a rocket trajectory piercing through the fog, reflecting strong upward momentum driven by ETF inflows, mid-sized accumulation, and a quiet confidence that this is not yet the peak.

This confidence is based on three signals from key market observers.

QCP wrote in its latest report that as policy uncertainty intensifies, capital is flowing out of overheated AI equities and into ‘trusted safe-haven assets’ such as gold and Bitcoin.

Glassnode noted that ETF inflows hit record highs, with medium-scale accumulation transforming resistance into support. CryptoQuant stated that on-chain profit-taking remains significantly below historical peaks, indicating room for further upside even as leverage gradually increases.

The three collectively describe a structurally bullish but tactically somewhat crowded market: robust at the base, volatile at the top.

However, the same data showing conviction also signals complacency. Futures open interest has reached new all-time highs, funding rates exceed 8%, and the options market is heavily skewed toward bullish positions, making the market vulnerable to sharp declines once momentum fades. Analysts describe this as a classic case of ‘strong trends, weak positioning,’ typically requiring a reset of leverage to fuel the next leg higher.

Glassnode wrote in its weekly report: ‘The current pullback is testing this leverage, helping to reset positions and restore balance.’ QCP Capital added, ‘Yesterday’s decline was more about position adjustments than policy shifts.’ Meanwhile, CryptoQuant observed, ‘Profit-taking remains modest compared to historical market tops.’

Despite differing perspectives among data analytics platforms, Glassnode warned that leverage needs to be flushed out before the rally can stabilize; CryptoQuant believes there is still room until extreme optimism sets in; while QCP views this move as part of a macro rotation into ‘trusted safe-haven assets’ like gold and Bitcoin.

Bitcoin’s rally is being analyzed from three distinct angles. With funding rates elevated and open interest continuing to rise, traders may soon face the reset they have long warned about. The question is not whether Bitcoin can hold $120,000 but whether the next pullback will validate the depth of this rally or expose its fragility.

Gold continues to dominate the devaluation trade.

Additionally, the September Fed meeting minutes released on Wednesday showed that most officials still anticipate rate cuts later this year. However, some policymakers believed a rate cut was unnecessary in September, with most emphasizing upside risks to inflation.

Despite the cryptocurrency rebound, gold remains dominant in the ‘devaluation trade,’ surpassing $4,000 and rising 50% year-to-date. This rally has been driven by government deficits, volatile bond markets, and expectations of accommodative monetary policy. Japan’s yields hit a 17-year high this week, heightening anxiety among global investors and prompting a flight to gold as a safe haven—often at the expense of riskier assets like cryptocurrencies.

Charlie Morris, Chief Investment Officer at ByteTree, stated that gold’s rally is not driven by speculation.

“The market is hot, but not extremely so,” he said. “If deficits, money printing, instability, and rate cuts are driving the gold price up, perhaps these factors need to change before turning bearish. Gold may form a midterm peak at some point, but it’s better not to guess when and instead wait for evidence.”

He also pointed out that once gold’s luster begins to fade, Bitcoin could become the next asset favored by capital, mentioning that Bitcoin has historically been the second wave beneficiary in macroeconomic-driven risk rotations.

“When gold starts to cool down, there is a significant possibility of Bitcoin rising again,” Morris said.

Matthew Sigel, Head of Digital Asset Research at VanEck, reiterated in his long-term outlook that Bitcoin could eventually capture half of the gold market.

In a post on the X platform on Tuesday, he explained that this scenario depends on Bitcoin becoming an attractive store of value as ‘digital gold’ for younger generations. Based on the latest increase in gold prices, this projection implies that Bitcoin’s price could reach $644,000.