The US government remains shut down, yet Bitcoin and the broader crypto market have continued to hit new highs. While the Fed will continue to cut interest rates, the process will be slower than expected.
Market Overview
Bitcoin and Stock Performance Analysis
US equities closed with mixed results on Monday (October 6th, US). The Dow Jones saw a slight decrease of 0.14%, while the Nasdaq set a new all-time high (ATH) and closed up 0.36%. The S&P 500 also rose by 0.36%. Stock futures mostly showed an upward trend. Gold continued its climb, reaching a high of $3983 per ounce. Oil increased to $61.7 per barrel.
Since 2020, the S&P 500 has gained 106% in USD terms. However, when compared to Bitcoin, the index’s performance is approximately 88% lower. For instance, $100 invested in the S&P 500 would have turned into $210, while the same amount invested in Bitcoin would have grown to nearly $1,474. The S&P 500 is a diversified, low-risk index representing the 500 largest US companies. Bitcoin is a single digital asset, highly volatile, with a smaller market capitalization, based on scarcity and decentralization.
Bitcoin also reached a new ATH of $126,000 before settling back around $124,500. Most major altcoins saw slight gains, with BNB hitting a new high yesterday. The overall crypto market capitalization reached $4.38 trillion.
According to Glassnode, after Bitcoin surged past $125,500, the amount of BTC on centralized exchanges like Binance and Coinbase dropped to a 6-year low of about 2.8 million coins. This is a clear sign that many investors are withdrawing assets to personal wallets and that corporations are accumulating them in their treasuries (currently holding 3.88 million BTC), indicating a long-term holding trend. In the past two weeks, over 114,000 BTC, valued at around $14 billion, have left exchanges, suggesting that many are holding for the long term rather than selling. When Bitcoin leaves exchanges, the “liquid supply” drops sharply, increasing buying pressure and potentially pushing prices higher.
Institutional Flows: ETF Records and Morgan Stanley’s Endorsement
Record-Breaking ETF Inflows
US BTC spot ETFs saw a massive inflow of over $1.19 billion on Monday (October 6th, US). ETH spot ETFs attracted $176.6 million in inflows. The SOL ETF also recorded $2.7 million in inflows.
Eric Balchunas (Bloomberg) shared that BlackRock’s Bitcoin ETF, IBIT, is nearing $100 billion in assets under management, making it BlackRock’s highest-earning fund. In less than two years, IBIT generates $244 million in annual management fees, surpassing even the 25-year-old Russell 1000 ETF ($219 million/year). This clearly demonstrates the accelerating demand for Bitcoin ETF investments.
Additionally, Grayscale became the first company in the US to integrate staking into its spot crypto ETPs. Its Ethereum Trust (ETHE) and Ethereum Mini Trust (ETH) have officially activated staking, while its Solana Trust (GSOL) has also enabled this feature and could become the first spot Solana ETP with staking if approved for uplisting. Grayscale stated that staking helps increase long-term value and strengthens network security, and it plans to expand this feature to other products.
Morgan Stanley Officially Recommends Bitcoin
In a recent interview with CNBC, billionaire investor Paul Tudor Jones stated that “Gold, crypto, and Nasdaq are the winning horses this year.” He noted that gold has risen about 46–47%, Bitcoin is up, and the basket of meme stocks compiled by Morgan Stanley has also increased by nearly 68%, demonstrating strong buying power from retail investors. He described crypto and digital gold (Bitcoin) as “very attractive” and shared that he holds all three asset classes: gold, crypto, and Nasdaq.
Paul Tudor Jones believes the real profit race will continue until the end of the year, as this is when large investment funds summarize their portfolios and announce annual results. This means institutions often buy assets that are performing well to “window dress” their profit reports, thereby creating additional buying pressure and pushing prices higher. He stated, “Whichever horse is running the fastest right now is very likely to continue leading until December 31st.”
Furthermore, Morgan Stanley has officially recommended that investors include Bitcoin in their portfolios. The company announced it will support 16,000 financial advisors, who manage over $2 trillion in assets, should they choose to allocate portfolios to Bitcoin and crypto. Morgan Stanley, one of the oldest financial institutions in the US, recommended an allocation of 2–4% of portfolios to crypto, especially Bitcoin. The bank views Bitcoin as “digital gold,” emphasizing its scarcity and long-term store-of-value capability.
The latest report from the Global Investment Committee (GIC) indicates:
- For an Opportunistic Growth portfolio, investors can allocate up to 4% to crypto.
- For a Market Growth portfolio, the allocation is 3%.
- For a Balanced Growth portfolio, approximately 2% is recommended.
- For Wealth Preservation or Income-Focused portfolios, investment in crypto is not recommended (0%).
This official endorsement follows Morgan Stanley’s previous announcement in September 2025 of its plan to allow trading of Bitcoin, Ethereum, and Solana on its E*Trade platform, in partnership with ZeroHash, as it expands into the crypto sector.
Fed’s Dilemma: Dissent on Rates & Yield Curve Control
Fed Governor Stephen Miran called for aggressive interest rate cuts while President Trump claimed that “there is no more inflation.” Stephen Miran, the new governor appointed by President Trump, urged the Fed to cut rates by 0.5%, arguing that the current policy is too restrictive and that the “neutral rate” has decreased due to changes in immigration and economic growth. Miran believes the Fed should act quickly rather than slowly, warning that maintaining high interest rates for too long could harm the economy. While Miran pushes for deeper and earlier cuts, many other Fed officials remain cautious due to persistent inflation, especially in the services sector: Chicago Fed President Austan Goolsbee warned against “cutting too fast and too aggressively.” Vice Chair Philip Jefferson said easing is necessary but must be balanced to protect the labor market. Dallas Fed President Lorie Logan stated that inflation remains “a major concern.” Fed Chair Jerome Powell confirmed that there is “no widespread support” for a 0.5% cut, stating that such aggressive changes should only be made when “policy is truly in the wrong place.” Meanwhile, President Trump praised the economy on X, writing: Good news for the holiday season. Commodity prices are already down, and tariffs are helping America return to its position as an economic superpower. There is almost no inflation as the stock market continually hits new highs.
In summary, Stephen Miran is currently the only official pushing for aggressive rate cuts, while the majority of Fed officials still favor a more cautious approach, especially as inflation remains above the 2% target.
Other Key Crypto & Market Updates
ZOOZ Power ($ZOOZ) from Israel just purchased an additional 329 Bitcoin, raising its total holdings to 854 BTC.
Galaxy Digital launched the GalaxyOne app, expanding into the US retail customer segment. The app offers a 4% interest account, crypto custody and trading services, along with commission-free trading of US stocks and ETFs. Users can trade Bitcoin, Ether, Solana, Paxos Gold, and over 2,000 stock tickers, including fractional shares. GalaxyOne also offers a “Premium Yield” package with an 8% annual interest rate for accredited investors but does not have FDIC insurance. This move puts Galaxy in direct competition with Robinhood, eToro, and Cash App.
US company Opendoor announced that it will allow customers to purchase homes using BTC and other crypto assets.
DefiLlama has delisted the perpetual futures trading volume data for the DEX Aster due to concerns about transparency. Anonymous co-founder 0xngmi stated that Aster’s volume “almost perfectly mirrored” Binance Perp, but the platform failed to provide detailed data to verify against wash trading. Therefore, DefiLlama has temporarily suspended Aster’s data until clear evidence is provided.
Disclaimer
This article is for informational purposes only and should not be considered financial advice. Please do your own research before making investment decisions.
