Bitcoin (BTC) started the first day of October 2025 on a bullish note and continued to surge on the second day, with the price reaching a high of over $121k. This surge led to the liquidation of $135 million from leveraged BTC traders, with a majority of it coming from short positions.
Major Reasons Why Bitcoin Price Surged Today
Rising Open Interest (OI)
CoinGlass market data analysis shows that Bitcoin’s Open Interest (OI) has seen a rebound in the past few days. Currently standing at around $86 billion, the OI has surged from $77 billion just last week. Historically, a higher OI has often been associated with a rally in Bitcoin price.
Technical Tailwinds
In the daily timeframe, BTC price has broken above a major resistance level between $117k and $120k. After bouncing back from the daily 100 Moving Average Simple (SMA), the price has also surpassed a falling logarithmic resistance trend that had been forming over the past two months. According to crypto analyst Benjamin Cowen, BTC price is expected to continue its rally in the next three months and potentially peak before the end of the year.
High Institutional Demand
The demand for Bitcoin as a hedge against inflation remains strong, with U.S. spot BTC ETF issuers recording a net cash inflow of $675 million. Additionally, companies like Metaplanet have been actively implementing Bitcoin treasury plans, with a recent purchase of over 5,000 BTCs.
Macroeconomic Uncertainty
Bitcoin price has also benefited from the ongoing macroeconomic uncertainty, especially following the U.S. government shutdown and escalating tensions between Russia and Ukraine. Investors have been turning to Bitcoin as a risk-on strategy to hedge against fiat inflation.
What are the Midterm Expectations for BTC Price
Citigroup recently lowered its Bitcoin price target for the end of the year to $133k but raised its 12-month target to $181k. On the other hand, JPMorgan reiterated that Bitcoin is undervalued compared to gold and issued a midterm target of around $165k. The gold price has also hit a new weekly all-time high since mid-August 2025.
Overall, Bitcoin’s price surge can be attributed to a combination of factors including rising OI, technical tailwinds, high institutional demand, and macroeconomic uncertainty. As the cryptocurrency market continues to evolve, Bitcoin remains a key player with the potential for further growth in the near future.