• Bitcoin is trading near its August high, with forecasts pointing toward $200,000 by year-end.
• ETF inflows have surged to $3.24 billion, marking the second-best week since launch.
• Market sentiment is improving amid expectations of a U.S. interest rate cut and the ongoing government shutdown.

Bitcoin is once again in the spotlight as Standard Chartered predicts a potential record-breaking rally. The bank’s Head of Digital Assets Research, Geoffrey Kendrick, reaffirmed his target of $200,000 for the world’s largest cryptocurrency by the end of the year.

He noted that if the ongoing U.S. government shutdown continues, Bitcoin’s correlation with Treasury term premiums could push prices higher. Currently, BTC trades at $123,276.84, hovering just below its August peak of $124,480.

According to Kendrick, BTC could reach $135,000 in the coming weeks, slightly later than his earlier projection. He also highlighted that strong exchange-traded fund inflows and favorable macroeconomic trends could drive the next leg of the rally.

Also Read: Strategy Now Holds $77.4 Billion in Bitcoin, Surpassing Global Banks in Value

Bitcoin ETF Inflows Signal Renewed Investor Confidence

U.S.-listed spot Bitcoin exchange funds have gone into October with a bang. They had cumulative net inflows of $3.24 billion in the last week, close to their all-time high of $3.38 billion in November 2024.

Data from SoSoValue shows that the numbers mark a brisk rebound from the previous week’s withdrawals of $902 million.

Digit asset exchange Nexo’s dispatch expert Iliya Kalchev stated that the recovery was due to growing hopes for another U.S. interest rate reduction. He added that such “change of sentiment” had spurred almost $4 billion in inflows in four weeks.

At this rate, fourth-quarter ETF inflows would deleverage more than 100,000 BTC from issuance, exceeding twice that amount of fresh issuance.

This swift absorbence, alongside decreased long-hold distribution, has allowed Bitcoin to steady up near support levels. Investors now see ETF activity as the brightest beacon for market direction.

Uptober Momentum Builds Ahead of Key U.S. Events

Historically, October was one of Bitcoin’s strongest months, usually referred to as “Uptober” among traders. This year is not an exception. ETF inflows, seasonality, and dissolving macro pressures conspire to form an encouraging digital asset backdrop.

But various upcoming events may swing Bitcoin in its next direction. Traders have been keenly looking at Federal Reserve Chair Jerome Powell’s next speech, in addition to the publication of the newest Federal Open Market Committee minutes.

The delayed U.S. jobs report, dependent on the duration of the government shutdown, also remains a key factor.

Also Read: Bitcoin Breaks New All-Time High Barriers, Can Bulls Push Toward $140K?