Crypto investments reached $1.2 billion last week, marking three consecutive weeks of positive growth since September 9, benefiting Bitcoin. This increase comes amid growing optimism in the market, driven by favorable macroeconomic developments and other value-boosting events in the financial sector.

Furthermore, September broke its typical underperformance trend, thus creating the strongest starting point for Bitcoin (BTC) and the broader crypto market heading into October.

Crypto inflows surge to $1.2 billion amid market optimism

Digital asset investment products saw $1.2 billion in inflows last week. Bitcoin led the way, recording $1.070 billion in positive flows.

Short-Bitcoin investment products also saw inflows totaling $8.8 million. Meanwhile, Ethereum (ETH) ended a five-week streak of outflows, with inflows reaching $87 million, reflecting a revival in positive sentiment.

Read more: How to Protect Yourself from Inflation Using Crypto

The US leads the region with $1.17 billion, and the latest report from CoinShares attributes the inflows to positive economic data in the country.

As reported by BeInCrypto, the Federal Reserve’s 50 basis point interest rate cut in September triggered a wave of liquidity, benefiting riskier assets like Bitcoin. Combined with slowing inflation, markets are now expecting more rate cuts by the end of the year.

Crypto Investment Inflows. Source: CoinShares

The report also highlights that the approval of options trading in the US has added impetus to crypto investment inflows. BlackRock’s spot Bitcoin ETF recently secured approval for options trading from the US Securities and Exchange Commission (SEC). A development expected to bring more liquidity and increase market stability.

This also opens the door for the possible approval of Ethereum ETFs, a widely discussed possibility.

“Digital asset investment products saw a third consecutive week of inflows totaling $1.2 billion, which we believe is a reaction to continued expectations of dovish monetary policy in the U.S. The approval of options for certain U.S.-based investment products likely boosted sentiment,” an excerpt from the report reads.

Indeed, there is generally positive sentiment in the crypto market. This has seen BlackRock’s ETHA join the $1 billion ETF club in two months. It has also catapulted Bitcoin and Ethereum ETF inflows to multi-week highs amid growing hopes of a market-wide recovery.

Bitcoin records best September close ahead of Q4

Elsewhere, hedge funds are predicting a Bitcoin rally in Q4 after the cryptocurrency’s strongest September close on record. Bitcoin has historically struggled in September, often posting negative returns. However, this year it has defied expectations, rising by around 20%.

ZX Squared Capital predicts that the upcoming US election will further boost Bitcoin, regardless of the outcome. The hedge fund argues that both political parties have failed to address the rising national debt and deficits, a factor it believes will strengthen Bitcoin’s position post-election.

Read more: What is Bitcoin Halving? Everything you need to know

Similarly, analyst Crypto Rover expects Bitcoin's best price performance to occur in Q4, citing historical patterns following halving events.

In fact, Bitcoin has a history of rallies in Q4, especially in halving years like 2020. With traders and investors looking ahead to a possible all-time high in 2024 or soon after, this optimism could attract more retail interest, generate media coverage, and drive greater adoption.

Bitcoin Price Performance Post-Halving. Source: Crypto Rover

The article Crypto investment soars at the end of September and Bitcoin surprises was first seen on BeInCrypto Brazil.