Safaripinned-tab (1)-svg
The supply of #bitcoin on exchanges has hit a six-year low.
Institutional investors are stocking up on #BTC at levels not seen since July. In October, bitcoin enthusiasts rekindled their spirits when the supply of the major #cryptocurrency hit a six-year low. This fall coincided with an encouraging U. S. jobs report and hints of a possible interest rate cut by the U. S. Federal Reserve, which fueled expectations of a lively rally in the cryptocurrency market in the fourth quarter: On Oct. 4, bitcoin soared to $62,338 after an unexpectedly strong employment report for September. The number of jobs in the U. S. non-farm payrolls rose to 254,000, far exceeding economists' expectations of 147,000, and the unemployment rate fell to 4.1%.
The probability of a Fed rate cut is 97%: will bitcoin soar? Investors are betting on a 97% chance of a 25 basis point rate cut at the November meeting of the Federal Reserve, which could create a favorable environment for risky assets, including bitcoin. This optimism is bolstered by blockchain data showing a sharp decline in the amount of bitcoin held on exchanges.
CryptoQuant reports that just over 2.8 million BTC are currently held on exchanges, the lowest since November 2018; the significant 500,000 BTC decline since March suggests a reduction in liquidity, which is often a bullish signal for prices.
In the past, bitcoin has experienced sharp rises during similar periods, most notably between March and November 2020, when it began rising to its then all-time high of $69,000. Institutional investors appear to have seized the opportunity and rushed into U. S. spot bitcoin #ETF funds at levels not seen since July.
While new market sentiment around "Uptober" has emerged, just a few days ago we were talking about "Rektober". Read more:
Read us at: Compass Investments
