On October 2, 2025, the global encryption asset market experienced significant growth, with the total market capitalization soaring to $4.17 trillion, up 4.2% from the previous day. The 24-hour volume reached $215 billion, clearly higher than the recent average level, indicating a substantial increase in market activity.

Mainstream digital currencies have performed remarkably, with Bitcoin (BTC) breaking through the $118,000 barrier, reaching a high of $119,400, and a daily increase of 3.7%. Ethereum (ETH) performed even better, rising 6.3% to $4,399, and is expected to challenge the $4,500 to $4,750 range. Notably, Dogecoin (DOGE) leads mainstream currencies with a 9.7% increase, while Zcash (ZEC) has become the market focus with an astonishing 74.2% increase.

The market sentiment indicator has also improved, with the Fear and Greed Index rising from 42 the previous day to 51, indicating that investor confidence is recovering. This change is associated with multiple positive factors: First, Glassnode data shows that the options market, volatility, and liquidity indicators are all showing positive signals, suggesting that the market is developing in a more neutral and constructive direction. Second, the selling pressure from long-term holders has weakened, coupled with continuous inflows of ETF funds, further consolidating the healthy state of demand.

The net inflow of Bitcoin spot ETFs in the United States reached $676 million in a single day, with a cumulative scale rising to $58.44 billion. Ethereum ETFs also attracted a net inflow of $8.079 million, highlighting institutional investors' continued optimism towards digital assets. Despite the short-term risk of a government shutdown in the United States that could trigger market volatility, investors generally expect the medium-term monetary policy to remain relatively loose.

From a technical perspective, Bitcoin currently faces key resistance levels in the range of $122,000 to $125,000, while Ethereum needs to break through $4,500 to continue its upward movement. Although the overall market shows a positive trend, investors remain cautious and closely monitor potential risk factors.

Overall, this round of increase is mainly driven by the continuous inflow of ETF funds, reduced market selling pressure, and the overall structure becoming more stable. As Bitcoin breaks through $118,000, it is expected to test the range of $120,000 to $125,000 in the short term. Although market sentiment has improved, participants should remain vigilant and closely monitor market trends and potential risks.