Bitcoin prices held steady on Tuesday after briefly touching a record high above $126,000 in the previous session. The rally was driven by strong ETF inflows, “debasement trades” linked to the ongoing U.S. government shutdown, and seasonal optimism known as “Uptober.”
The world’s leading cryptocurrency surged to a new peak of $126,186 on Monday before easing slightly as traders took profits. By 06:05 GMT, Bitcoin was up 0.4%, trading around $124,427, after gaining more than 10% last week.
Bitcoin supported by ETF inflows, debasement trades, and ‘Uptober’ trend
According to SoSoValue, U.S. spot Bitcoin ETFs attracted $3.2 billion in net inflows during the week ending October 3 — the second-largest weekly total since their debut earlier this year. On October 3 alone, daily inflows reached nearly $985 million, underscoring strong institutional demand.
These inflows have given professional investors exposure to Bitcoin without the need for direct custody, helping to reinforce bullish momentum.
Meanwhile, the U.S. government shutdown has intensified investor appetite for non-sovereign assets like Bitcoin and gold. Market participants view these assets as protection against potential monetary easing or currency debasement, often referred to as the “debasement trade.”
October’s seasonal strength, known in crypto circles as “Uptober,” has also added to the positive sentiment, as Bitcoin historically performs well during this period. However, profit-taking after the record high caused a brief pullback on Tuesday.
Galaxy Digital challenges Robinhood with new platform
In corporate news, Galaxy Digital (TSX: GLXY) launched GalaxyOne, a new trading platform offering commission-free stock and crypto trading. The move directly challenges Robinhood (NASDAQ: HOOD) and immediately pushed Galaxy shares up 7% on Monday.
GalaxyOne mirrors Robinhood’s core features, giving users access to over 2,000 stocks and ETFs, cryptocurrency trading, and high-yield cash accounts. Following the announcement, Robinhood’s shares dropped 3% on Nasdaq.
Altcoins stay upbeat as Ether and Dogecoin rally
The broader crypto market traded higher on Tuesday, though some altcoins remained rangebound amid global uncertainty.
Ethereum (ETH) jumped 4.1% to $4,712, while XRP gained 0.5% to $2.99. Solana (SOL) held firm, and Cardano (ADA) along with Polygon (MATIC) rose 3.5% each. Among meme tokens, Dogecoin (DOGE) surged nearly 5%, while $TRUMP advanced 2%.
