Bitcoin smashed through $126,000 over the weekend thanks largely to massive institutional demand through US spot ETFs. Last week alone, these products pulled in a staggering $3.24 billion, showing this rally is being driven by serious spot market buying rather than leveraged speculation.
The surge lifted the entire crypto market, with Ethereum gaining 12%, Solana and Dogecoin both up 13%, and XRP recovering 5%. Binance Coin was the standout performer, rocketing over 23% in seven days. Bitcoin has since cooled slightly to around $124,500 as some profit-taking kicked in.
Major banks are getting bullish for the fourth quarter. Citigroup set a $133,000 target, while JP Morgan and Standard Chartered are calling for $165,000 and $200,000, respectively. They’re framing this as the “debasement trade,” where inflation and US debt concerns push investors toward Bitcoin and gold.
Options traders are betting heavily on Bitcoin climbing above $130,000 in coming weeks, with significant call buying around the $130,000, $150,000, and $180,000 strike prices. But they’re also hedging hard against a potential drop to $85,000.
The big risk everyone’s watching is whale behavior. Their unrealized profits just hit a record $10 billion, which historically increases the chances of major selloffs. Analyst Will Clemente expects at least one dip before any continued rally.
Conclusion
Bitcoin hit $126,000 on $3.24 billion ETF inflows as banks target $130k-$200k, though whale profits reaching $10 billion raise correction concerns.
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