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Bitcoin Breaks Multi-Month Resistance as Institutional Inflows Resume

The largest cryptocurrency cleared a key technical level and traded above $94,000, with spot ETFs posting their strongest weekly inflows since launch.

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Bitcoin surged past $94,000 this week, breaking a resistance zone that had capped the market since July. The move was accompanied by the largest weekly inflows into U.S. spot bitcoin ETFs since their January 2024 launch, with $3.4 billion of net creations across the eleven listed funds.

Ethereum also advanced, gaining 11% to trade above $4,300, while the broader CoinDesk 20 Index rose 8%. Options market structure suggests further upside: three-month risk reversals have flipped into a call premium for the first time since March.

"The bid has broadened beyond the original ETF cohort," said Ricardo Alvarez, head of digital assets at Halcyon Trading. "You are seeing corporate treasuries, sovereign wealth funds in the Gulf, and registered investment advisors all adding exposure simultaneously."

On-chain data support the bullish read. Exchange balances have fallen to their lowest level since 2019, and long-term holder supply has resumed its expansion. Funding rates across major derivatives venues remain positive but not overheated.

Regulatory clarity has also helped. The SEC approved generic listing standards for commodity ETFs in September, removing a key procedural hurdle for future products. In Europe, MiCA implementation is on track for full application by year-end.

Risks remain. Concentration in ETF ownership means flows can reverse quickly, and macro shocks have historically produced sharp drawdowns in crypto alongside risk assets. Analysts point to $86,000 as the first meaningful support level below current prices.

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