A recent surge in spot Bitcoin ETF inflows has pushed the price of Bitcoin closer to its last known all-time high as institutions start off October with intense buying ahead of what the general timeline is predicting will be an up only month.
The increased Bitcoin ETF inflows, as the U.S. government remains shut down, have led analysts to note the diversion of funds into safe-haven alternatives like Bitcoin and gold, with the latter setting all-time high prices during the week.
According to data from SosoValue, Bitcoin ETFs attracted $3.24 billion in net inflows this week. It is their largest weekly inflow since the year began and is also their second-largest weekly haul since they launched last year.
The Bitcoin ETFs saw $3.24 billion in weekly inflows between Monday and Friday this week, with Friday’s net inflow of $985 million being the second-largest daily inflow, second only to the $987 million they poured in on January 6. This reversed the $902 million outflow from the previous week and pushed four-week inflows close to $4 billion.
The record Bitcoin ETFs’ weekly inflows are also happening alongside the rally in BTC’s price that kicked off the month. The price is already up over 10% this month, living up to the “Uptober” hype based on the fact that October is BTC’s second-best-performing month based on historical data.
Year-to-date, Bitcoin ETFs have drawn in $23 billion of the $58 billion in total net inflows since their inception, a factor analysts claim is proof of growing institutional adoption.
Aside from the increased inflow, the market also seems to be pricing in another potential Fed rate cut.
The increased ETF inflows may have triggered another rally in BTC’s price; however, the U.S. government shutdown that began on October 1, 2025, may sustain the trend for the rest of the month.
The political uncertainty that led to the government shutdown has also coincided with dollar price turbulence and talk of a capital flight as investors rush to hedge against the fall with BTC and precious metals.
Observers are now predicting a month-long rally, including JPMorgan analysts, calling out the “debasement trades,” as investors continue to move to BTC and gold to hedge against inflation and macro uncertainties, including the ongoing U.S. government shutdown.
Prediction marketplace Polymarket has suggested there is over a 60% chance that the shutdown will last 10–29 days, during which BTC will really have a chance to shine as a store of value and hedge against inflation.
On Kalshi, the current forecast implies the stoppage will last 11.1 days, up sharply in recent days as there has been no progress in negotiations happening on Capitol Hill.
The shutdown formally started early Wednesday morning following a deadlock between top Democrats and Republicans, including President Donald Trump, on a short-term deal to keep the government funded.
Government shutdowns usually last about 14 days, based on data from Bank of America going back to 1990. The S&P 500 has averaged a 1% increase during these events, but a prolonged closure this time could affect the already fragile markets.
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