As October progresses, aptly dubbed “Uptober” in the crypto community, Bitcoin (BTC) is pushing towards unprecedented heights. The leading cryptocurrency soared to an impressive $126,223 during U.S. trading hours, marking a significant leap from just above $125,000 earlier in the week. Currently, BTC is trading around $125,200, reflecting a 1.5% increase over the past 24 hours.
The recent rise in Bitcoin’s value can be attributed to several macroeconomic factors contributing to a favorable environment for digital assets. Notably, the decline of the U.S. dollar has played a crucial role, allowing Bitcoin to break past its January highs when valued in euros, now crossing the €106,000 threshold. Additionally, BTC has surpassed its mid-August peak in Swiss francs to reach 99,642 CHF, according to TradingView data.
Bitcoin’s upward momentum is not isolated; it has prompted a broader rally across the cryptocurrency market. Ethereum (ETH) saw a notable increase of 4%, climbing to $4,700, its highest price in over three weeks. This surge has positively influenced the CoinDesk 20 Index, reflecting a general upward trend among major cryptocurrencies. Memecoin sensation Dogecoin (DOGE) and Binance’s native token BNB both experienced gains ranging from 6% to 6.5% as investor interest surged.
Meanwhile, in the realm of crypto-associated stocks, trading outcomes were mixed. Retail trading platform Robinhood (HOOD) dropped 3% after news broke that Galaxy Digital would launch GalaxyOne, a competitive crypto trading platform mirroring Robinhood’s offerings. In contrast, Galaxy Digital (GLXY) shares experienced a 7% uptick amid investor optimism surrounding its strategic move.
Other crypto-related firms such as Coinbase (COIN), Circle (CRCL), and Strategy (MTSR), founded by Michael Saylor, saw gains of around 2% as the overall positivity in the crypto space lifted their stock prices. Notably, cryptocurrency mining stocks enjoyed particular success, fueled by excitement over a deal between OpenAI and AMD concerning a substantial investment in AI chips. Major mining firms Marathon Digital (MARA), Riot Platforms (RIOT), and Cleanspark (CLSK) all reported gains of approximately 10%, buoyed by expectations for increased demand in data centers alongside Bitcoin’s impressive price movement.
According to Jean-David Péquignot, Chief Commercial Officer of Deribit, a crypto options trading platform recently acquired by Coinbase, Bitcoin’s current rally can be attributed to a “perfect storm of macroeconomic tailwinds.” He noted that the ongoing U.S. government shutdown has led to increased interest in hard assets such as gold and Bitcoin. Simultaneously, the inflow of investments into Bitcoin exchange-traded funds (ETFs) combined with decreasing spot supplies on exchanges is fueling a “self-reinforcing bull cycle.”
Péquignot identifies technical indicators suggesting further potential growth, estimating short-term targets for Bitcoin between $128,000 and $130,000, and even a possible peak of $138,000. However, he also cautioned that the current market conditions may be overbought, predicting the possibility of a brief decline to the $118,000 to $120,000 range.
He advised investors to observe volatility shifts and changes in put option volumes, which could signal corrections in the near term. As bullish sentiment drives professionals to eye the $130,000 mark and beyond, those with bearish perspectives may find potential openings in short-term market corrections.
