The cryptocurrency market is experiencing a robust surge, with Bitcoin reaching a seven-week high as October gets underway, a month historically known for its bullish trends in the crypto space.
The price of Bitcoin (BTC) has appreciated by 4% in the last 24 hours, climbing to $119,450 on Coinbase during early Thursday trading, according to data from TradingView. This marks Bitcoin’s highest price point since mid-August, when it began a downward correction from its previous all-time highs.
Following this significant upswing, Bitcoin has successfully surpassed the critical resistance level of $117,500. However, further resistance is anticipated around the $120,000 mark. A breakthrough beyond this threshold could pave the way for new peaks, although Bitcoin has slightly retracted to $118,947 as of this report.
This upward momentum has had a positive ripple effect on the overall cryptocurrency market, boosting total market capitalization by 3.5% to approximately $4.16 trillion. Furthermore, Bitcoin’s current market capitalization of $2.37 trillion has positioned it above that of tech giant Amazon, according to CompaniesMarketCap.
October has historically been Bitcoin’s most favorable month, with the asset showing positive returns in ten of the last twelve Octobers, as reported by CoinGlass. Traders are hopeful that this trend will continue, leading to what many in the community are calling ‘Uptober.’
Recent economic data from the U.S. has indicated some weakness in the labor market, which analysts believe could prompt the Federal Reserve to consider cutting interest rates again in the near future. According to figures released this week by the Bureau of Labor Statistics, hiring declined slightly, while job openings saw only a marginal increase. Market analysts suggest that this scenario may favor higher-risk asset classes, with cryptocurrencies expected to benefit from a potential favorable monetary policy shift.
Market analyst Tony Sycamore commented on the situation, stating, “The weak ADP employment report has implications for the Fed’s next move, as lower consumer confidence points to rising unemployment predictions. This could clear the way for additional rate cuts.” Current predictions from CME futures markets indicate a 99% likelihood of a 0.25% rate cut during the Fed’s upcoming meeting on October 29th.
As Bitcoin continues to lead this rally, other altcoins are also showing impressive gains. Ethereum (ETH) has seen an increase of over 5% recently, reaching prices of $4,390, a level not witnessed since late September. Furthermore, several altcoins, including Solana (SOL), Dogecoin (DOGE), Cardano (ADA), Chainlink (LINK), and Hyperliquid (HYPE), have reported gains exceeding 6% in the same time frame.
The upward momentum in the crypto markets highlights the current optimism among investors as they watch the interplay between economic indicators and monetary policy. As October progresses, many are keeping a close eye on Bitcoin and its fellow cryptocurrencies for potential further gains.
