BTC surpassed $86,800, and inflows into Bitcoin ETFs were reported to have resumed. Future interest-rate trends at the BoJ and FRB were cited as market drivers.
BTC moved above $86,800 on Thursday, approaching the previous week’s high. The market viewed clues about the Bank of Japan’s next interest-rate move as a driver, while positions in the futures market also continued to build.
Net inflows into Bitcoin ETFs totaled approximately $102.7 million. After nine consecutive business days of inflows had continued through the end of September, the inflows resumed. Net inflows into US spot ETFs, which had fallen sharply at the end of September, recovered again on 1 October.
Following the release of the Bank of Japan’s policy decision, the probability of an additional rate hike in October fell to approximately 40%, while the probability of an FRB rate hike declined to around 25% around the release of the employment report. The results of the US employment report could determine the direction of risk assets, including BTC.
In the derivatives market, BTC open interest and positions increased, and some believe that a move above $86,000 does not indicate speculative overheating.
It was reported that differences of opinion among Bank of Japan board members over the pace of rate hikes and the FRB’s future policy decisions could affect market liquidity trends.