Altcoins Retreat as $2.7B Boosts Bitcoin ETFs Amid Friday Pullback

Bitcoin Holds Bullish Outlook Amid Pullback; Privacy Coins Surge

Bitcoin (BTC) traders remain optimistic about a gradual recovery despite a recent price pullback, while privacy-focused cryptocurrencies are staging a strong comeback.

BTC briefly slipped to $120,000 overnight, weighing on the broader crypto market. Ether (ETH) fell 2.4% in 24 hours, erasing its weekly gains, while Solana (SOL), XRP ($2.7347), Dogecoin (DOGE, $0.2374), and Cardano (ADA) each declined by up to 3%, according to CoinDesk data.

The dip in Bitcoin contrasts with persistent demand for U.S.-listed spot ETFs, which have drawn $2.72 billion in inflows this week. Analysts say this underscores BTC’s emerging role as a digital hedge alongside gold, which recently broke the $4,000 per ounce mark. Investor confidence has also been supported by dovish signals from the Federal Reserve following its September rate cut.

Short-term pauses have been a recurring feature of Bitcoin rallies. After July highs, BTC fell 9% over three weeks before recovering. August saw a similar pattern with a sharper 14% retracement. FxPro analyst Alex Kuptsikevich suggested BTC could test the $107,000–$115,000 range before month-end, particularly with the Fed’s October 29 rate decision approaching.

“Even small moves below the upper limit of this range may trigger market concern,” Kuptsikevich noted.

Currently, the $107,000–$115,000 zone reflects the tug-of-war between dip buyers and patient shorts. Derivatives markets are less stretched than last month, and CryptoQuant reports a notable easing of selling pressure. ETF flows will be the true test of whether spot demand is enduring or front-loaded.

Macro conditions remain mixed. The U.S. government shutdown has extended into a second week, delaying key data releases. Analysts say such uncertainty favors haven assets like Bitcoin and gold. For BTC, $125,000 remains a key resistance level: steady buying could absorb supply, while a rapid bounce could push prices back into the $115,000–$118,000 range.

Privacy Coins Reclaim Spotlight

Privacy-focused cryptocurrencies are seeing a dramatic resurgence. Zcash (ZEC, $233.01) has surged nearly 80% in a week and over 400% since late summer. Monero (XMR, $331.31), Dash (DASH, $44.32), and smaller tokens like Railgun have gained up to 40% in 24 hours.

The rally is fueled by increased activity on Near’s privacy messaging tools, renewed investor interest in Zcash, and the Ethereum Foundation’s upcoming privacy research initiatives.