BTC Holds Bullish Sentiment Amid Pullback; Privacy Coins Surge

Bitcoin (BTC) traders remain largely optimistic about sustained price growth despite a recent pullback, while privacy-focused cryptocurrencies are drawing renewed attention.

The flagship cryptocurrency briefly dipped to $120,000 during overnight trading, weighing on the broader market. Ether (ETH) dropped 2.4% over 24 hours, erasing gains from the past week, while Solana (SOL), XRP ($2.7347), Dogecoin (DOGE, $0.2374), and Cardano (ADA) each fell by up to 3%, according to CoinDesk data.

Despite the temporary weakness in BTC, demand for U.S.-listed spot Bitcoin ETFs remains strong. This week alone, ETFs attracted $2.72 billion in inflows, highlighting Bitcoin’s growing role as a digital hedge alongside gold, which itself surged past $4,000 per ounce. Analysts note that dovish signals from the Federal Reserve following its September rate cut are reinforcing investor interest.

Short-term pauses have been typical during Bitcoin’s rallies. After reaching highs in July, BTC declined 9% over three weeks before rebounding. August saw a similar pattern with a sharper 14% retracement. FxPro analyst Alex Kuptsikevich told CoinDesk that Bitcoin could retest the $107,000–$115,000 range before the end of October, particularly as the Federal Reserve’s rate decision on October 29 approaches.

“Even attempts to move below the upper end of this range could trigger market concern, with the Fed’s key rate decision looming,” Kuptsikevich noted.

Currently, the $107,000–$115,000 zone defines the tug-of-war between dip buyers and patient shorts. Derivatives markets appear less stretched than last month, with CryptoQuant observing a notable easing in selling pressure. ETF inflows will be the key indicator of whether spot demand is persistent or front-loaded.

Macro conditions remain mixed. The U.S. government shutdown has extended into a second week, leaving investors without official data updates. Still, analysts say such uncertainty tends to favor safe-haven assets like gold and Bitcoin. For BTC, $125,000 remains a critical level: steady buying could absorb supply, while a rapid bounce could see prices chop between $115,000–$118,000.

Privacy Coins Stage a Comeback

Privacy-focused cryptocurrencies are reclaiming the spotlight, with Zcash (ZEC, $233.01) soaring nearly 80% over the past week and over 400% since late summer. Monero (XMR, $331.31), Dash (DASH, $44.32), and smaller tokens like Railgun have also seen sharp gains, rallying up to 40% in the past 24 hours.

The resurgence is fueled by increased activity on Near’s privacy messaging tools, renewed interest in Zcash, and the Ethereum Foundation’s plans to support a dedicated privacy research cluster in the coming months, according to reports.