(HedgeCo.Net) The crypto markets saw fireworks this week as Bitcoin blasted to a fresh all?time high, institutional money poured into digital-assets funds, and regulatory winds continued to swirl.
Bitcoin surged past $125,000, setting a new record high, before pulling back modestly. The Economic Times+2MarketWatch+2 The rally has been driven by broader macro uncertainty, a weakening U.S. dollar, and renewed investor appetite for alternative assets. Reuters+2The Economic Times+2 Even as Bitcoin trades within a tightening range near $121,000–$123,000, market participants remain watchful for a breakout. The Economic Times+1
One of the defining features of the week was record inflows into crypto ETFs. In the week ending October 4, global crypto ETFs attracted approximately $5.95 billion in new capital, led by the U.S., Switzerland, and Germany. Reuters Bitcoin-focused funds accounted for the lion’s share, while ether, Solana, and XRP also registered solid inflows. Reuters The wave of capital underscores how institutional and retail interest is coalescing around regulated crypto exposure. Reuters+1
Institutional activity extended beyond ETFs. The parent company of the New York Stock Exchange, Intercontinental Exchange (ICE), announced plans to invest up to $2 billion in Polymarket, a prediction?market platform built on crypto infrastructure. Financial Times+1 ICE intends both to distribute Polymarket’s event data and collaborate on tokenization initiatives. Financial Times+1 The move signals growing convergence between traditional financial giants and decentralized prediction systems.
On the regulatory front, momentum is mixed. In the UK, despite the Financial Conduct Authority lifting the ban on retail access to regulated crypto products, Hargreaves Lansdown (the UK’s largest retail investment platform) issued strong warnings to investors, arguing that crypto “has no intrinsic value” and remains highly speculative. Financial Times Meanwhile, in India, the fintech conference in Mumbai was notable for what was not said — cryptocurrencies and stablecoins were largely excluded from the agenda, signaling the continued reluctance of Indian regulators to embrace the industry. Reuters
Expansion and adoption also featured. The U.S. exchange Gemini launched a local arm in Australia, gaining registration with AUSTRAC to operate as a domestic digital currency provider. Reuters And in the index space, S&P Dow Jones Indices unveiled the S&P Digital Markets 50, a hybrid index combining 15 major cryptos with 35 crypto-related equities. A tokenized version of the index is expected to be issued later in 2025. Barron’s
But volatility remains front and center. Over the past 24 hours, Bitcoin dipped about 1%, while Ethereum fell ~3.6%, XRP declined ~2.4%, and Solana dropped ~0.3%. Barron’s Analysts point to profit?taking, a firmer U.S. dollar, and macro uncertainty as cooling factors in the near term. Barron’s+1
As traders and investors look ahead, key macro events (including central bank decisions and U.S. fiscal policy) will loom large. The tug of war between speculative exuberance and regulatory scrutiny continues, with the potential for sharp swings. But for now, crypto is riding the wave — and this week’s headlines may well mark a turning point in mainstream adoption momentum.