Crypto Market Hits Seven-Week High
The cryptocurrency market has seen a significant boost recently, reaching a seven-week high for Bitcoin as the traditionally strong month of October kicks off.
Bitcoin (BTC) experienced a 4% surge in the past 24 hours, with prices peaking at $119,450 on Coinbase early Thursday. This marks the highest price since August 14, just weeks before Bitcoin began its correction from an all-time high.
Currently, Bitcoin is breaking through resistance at $117,500 but is encountering some challenges at the $120,000 mark. If it can clear this hurdle, it might pave the way for new record prices. However, as of now, it has cooled slightly, settling at $118,947.
This upward movement has contributed to a total market capitalization increase of 3.5%, raising it to $4.16 trillion, which has revived a bullish sentiment. Additionally, Bitcoin’s market cap now stands at $2.37 trillion.
October has historically been a strong month for Bitcoin, generating gains in 10 of the last 12 years.
Labor Market Weakness Could Prompt Rate Cuts
In related news, the U.S. job openings saw a minor increase in August, but the overall number of jobs decreased, according to data from the Bureau of Labor Statistics. This ongoing weakness may prompt the Federal Reserve to consider cutting interest rates once again, which would likely be a positive development for volatile assets like cryptocurrencies.
IG market analyst Tony Sycamore mentioned that the recent weaker employment report could be influencing this situation. He predicts an uptick in unemployment rates from 4.3% to 4.4% for September.
He stated, “As traditional economic indicators weaken, the rise of Bitcoin above $118,000 indicates its increasing appeal, particularly as a response to shifting monetary policy and as a hedge against economic uncertainty.”
The CME futures market has indicated a rising probability for a 0.25% rate cut during the Federal Reserve’s upcoming meeting on October 29, increasing from 96.2% earlier this week.
Other Altcoins on the Rise
While Bitcoin is leading the charge, Ethereum (ETH) is also making gains, rising more than 5% to reach $4,390, the highest it has been since September 22.
Several other altcoins are experiencing even larger increases, including Solana (SOL), Dogecoin (DOGE), Cardano (ADA), ChainLink (LINK), and Hyperquid (HYPE), all seeing rises of over 6% throughout the day.
In an interesting remark on Twitter, Anthony Pompliano hinted at the momentum behind Bitcoin and its current trajectory, reflecting the general sentiment in the market.
