Crypto Markets Consolidate as Traders Await Next Catalyst

The cryptocurrency market traded slightly lower on Thursday, erasing gains from Wednesday’s trading session.

Bitcoin (BTC) fell 1% to $66,860, while Ethereum (ETH) was flat at $2,610. Other major cryptocurrencies, such as Solana (SOL) and Polkadot (DOT), dropped 2% and 3%, respectively.

Over the past 24 hours, liquidations in the crypto market hit 48,319 traders, with total liquidations amounting to $123.89 million. The lack of a clear catalyst driving market momentum has left traders on edge as the market swings.

Over 90% of Bitcoin Holders are Profitable

Despite the downturn, Bitcoin continues to show strong profitability metrics for long-term holders.

Bitcoin’s break above $67,000 has turned many short-term holders’ losses into profits.

A chart shared by crypto analytics firm Into The Cryptoverse revealed that only 8.5% of Bitcoin investors were still at a loss when the price hit $66,870 on Oct. 16.

The metric tracks Bitcoin’s "percentage supply in profit or loss," based on unspent transaction outputs (UTXOs) and compares the price at which the Bitcoin was last moved to the current price. The fact that such a large portion of Bitcoin holders are now in profit indicates a solid foundation for continued market strength, despite the day-to-day volatility.

Bitcoin ETF Inflows Continue to Climb

Bitcoin spot exchange-traded funds (ETFs) have been recording significant inflows, which may signal growing confidence in Bitcoin’s long-term prospects.

Bitcoin spot ETFs added $459 million on Oct. 16, marking four consecutive days of positive inflows.

These inflows may be a leading indicator of further price rallies, especially as BTC heads toward its all-time high of $73,790.

“The strong and growing inflows may be a leading indicator of further rallies as BTC heads back to its all-time high of $73,790. While the US election is the next key catalyst for BTC and crypto, markets remain uncertain as to where BTC will go post-election,” trading firm QCP Capital wrote.

On Oct. 16, Bitcoin spot exchange-traded funds (ETFs) attracted total inflows of $459 million, with BlackRock’s iShares Bitcoin Trust (IBIT) contributing $393 million and Fidelity’s Fidelity Bitcoin Trust (FBTC) adding $15 million. According to data from Farside Investors, over the past four days, spot Bitcoin ETFs have pulled in a total of $1.6 billion.

Amr Taha, a core contributor at CryptoQuant, noted that while Bitcoin ETF inflows above $400 million may seem bullish, they "do not always lead to sustained price increases."

Taha explained that in many cases, such inflows have "historically coincided with price corrections," cautioning against viewing them as a definitive indicator of continued upward momentum.

Stock Markets Post Modest Gains

U.S. stocks rose on Thursday, with investors awaiting new economic data. The S&P 500 and Nasdaq 100 rose 0.4% and 0.8%, respectively.

September’s retail sales report, released Thursday morning, revealed strong consumer spending, with sales rising 0.4% month-over-month, surpassing the Dow Jones estimate of 0.3%.