**Bitcoin Nears Record High Amidst ETF Inflows and Potential Federal Rate Cut**

Bitcoin surged to remarkable heights on Tuesday, briefly hitting $72,597 in the afternoon before settling at $72,590. This increase was driven by unprecedented ETF inflows and heightened activity in the derivatives market, marking a 5.5% gain over the past 24 hours. Bitcoin had not crossed the $72,000 threshold since March this year and has mostly remained rangebound since. The cryptocurrency is now edging closer to its all-time high of $73,737, as per CoinGecko data.

Ethereum (ETH/USD) mirrored Bitcoin's performance, achieving a peak of $2,650 and currently trading at $2,645, likewise up 5.5% over the same period. This surge is largely attributed to massive inflows into Bitcoin spot ETFs, which experienced an influx of $479 million on October 28. BlackRock's ETF IBIT led this trend with a $315.1 million addition, according to data from SoSo Value. Additionally, the Fidelity Wise Origin Bitcoin Fund (FBTC) saw inflows worth $44.1 million, and the ARK 21Shares Bitcoin ETF (ARKB) received $59.7 million. On the flip side, Ethereum spot ETFs experienced a total net outflow of $1.1376 million.

Experts anticipate that several factors will continue to drive Bitcoin's price upwards. Ryan Lee, Chief Analyst at Bitget Research, highlighted the role of liquidity propelled by ETF inflows and the potential for a Federal Reserve rate cut, which could further bolster crypto assets like Bitcoin. Darren Franceschini, co-founder of Fideum Group, noted a significant increase in Bitcoin's open interest in derivatives, recently reaching $37.6 billion. He associated this with potential price movements as traders position themselves ahead of expected market changes.

However, the recent surge in Bitcoin's price and activity is also accompanied by broader liquidation trends. CoinGlass data shows $222.8 million in liquidations over the past 24 hours, with short positions accounting for $164.6 million, reflecting strong buying pressure that forced bearish traders out of the market. Illia Otychenko, Lead Analyst at CEX.IO, pointed out that technical indicators suggest Bitcoin may be approaching a consolidation phase, with momentum indicators nearing overbought levels.

Despite these cautionary signals, some experts remain optimistic about Bitcoin's prospects. Eneko Knörr, co-founder of Stabolut, believes the timing is right for a significant Bitcoin breakout, especially as the cryptocurrency's supply on exchanges has dropped to record lows of under 2 million BTC. Knörr emphasized that Bitcoin has consolidated above the $67,000 level, which could serve as a strong support or launchpad for further gains.

As traditional finance companies increasingly incorporate Bitcoin into their offerings, the evolving role of crypto assets in institutional portfolios will be a key topic at Benzinga's Future of Digital Assets event on November 19.