US spot ETF inflows in October have exceeded $4.8 billion, matching institutional buying levels since April, with increased daily volume indicating renewed market participation.

Despite short-term volatility, ARK analysts see Bitcoin’s solid fundamentals and institutional backing positioning it for long-term growth, with potential surges as late-stage bull-market conditions develop.

94.5% of Bitcoin supply remains profitable, and high supply density near 30% signals potential for increased volatility and sharp price moves once sentiment shifts.

Analysts suggest Bitcoin may dip below the 200-day moving average temporarily, but this would not invalidate the ongoing uptrend characterized by higher lows and highs.

Market participants are focusing on liquidity around $114,000, with many traders heavily short on BTC, and weekends often seeing liquidity fishing activities.

Despite recent volatility, analysts believe the overall bull market remains intact, supported by strong fundamentals and institutional involvement, with public companies holding 1.1 million BTC and ETFs controlling 1.3 million BTC.

Macro trends point toward easing inflation and a dovish Federal Reserve stance, which could support Bitcoin as a technological and monetary hedge in a favorable macroeconomic environment.

Ark’s macro analysis suggests that fading inflation and potential productivity gains from deregulation may bolster Bitcoin's long-term growth prospects.

Options markets show rising implied volatility and a shift from bearish to nearly neutral skew, indicating a more balanced but crowded trading environment that could trigger sharp swings.

Derivatives data reveal contained leverage, with funding rates near 2.1% and futures basis at 7.6%, suggesting limited excessive speculation and a healthy market environment.

Futures open interest has hit new highs as Bitcoin surpasses $120,000, with annualized funding rates above 8%, signaling increased leverage that could lead to short-term volatility.

Bitcoin is currently trading near $111,700, consolidating after a 16% correction from recent highs, with traders betting on a rebound and approaching a target of $114,000.

The Bitcoin network's mining difficulty increased by 21.7% in Q3 and 61% year-on-year to 611 EH/s, reflecting record-high security and higher miner profitability, with daily revenue up 6.3% to $52.4 million.