On Monday, the crypto market experienced heightened demand from speculative investors. Bitcoin (BTC) price rallied over 2% to reach a new all-time high (ATH) of about $126,198 before retracing to trade about $124,879 at press time.
The wider altcoin market followed in tandem, led by Ethereum (ETH) and Binance Coin (BNB). According to the latest market data, the ETH price surged over 4% in the last 24 hours to reach a range high of about $4,736 before retracing to trade around $4,676 at press time.
The best performing large-cap altcoin was BNB, which surged over 6% to reach a new ATH of about $1,247 before retracing to trade about $1,225 at the time of this writing.
Top Reasons Why Crypto Surged Today
High Demand from Whale Institutional Investors
The demand for crypto assets has significantly increased in the past few days amid the ongoing United States government shutdown. For instance, a weekly report from CoinShares shows crypto investment products recorded the highest weekly cash inflow of about $5.95 billion.
Bitcoin registered a weekly cash inflow of about $3.55 billion, Solana reported a record cash inflow of about $706.5 million, while Ether recorded $1.48 billion. According to on-chain data analysis from Santiment, whale investors with a MNT account balance of between 100 and 1000 purchased over 60k BTC during the past week, thus currently holding 5.11 million.
October Bullish Sentiment
Historically, the crypto market has performed exceptionally well during the fourth quarter, especially in October. With Bitcoin already following Gold price action, Wall Street analysts have predicted a parabolic rally for the crypto market in the coming months fueled by institutional investors and clear regulatory clarity.
The ‘Uptober’ bullish sentiment is bolstered by the notable spot crypto ETF application in the United States. With the recent approval of generic listing standards, ETF experts have predicted that dozens of crypto ETFs will be approved soon.
Technical Tailwinds
From a technical analysis outlook, the crypto market – led by Bitcoin, Ethereum, and BNB – has already broken out of a multi-week choppy consolidation.
Crypto analysts Rekt Capital, BTC has entered its much-anticipated price discovery phase
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