At the time of writing, Bitcoin is trading at $68,461, consistently hitting higher highs. After the recent test of $69,000, we have not seen any major pullbacks, which is a very positive sign for the market. This steady movement is fueling optimism for those looking forward to further gains as we approach the end of October.
Cryptocurrency Market Insights
Bitcoin consolidated at higher levels over the weekend, and market sentiment was more positive than in previous months. Despite the recent significant pullback, Bitcoin failed to reach new lows and is now approaching the $69,000 mark again after 80 days. Analysts from QCP Capital shared their latest insights on the current situation:
âThis week has been interesting for crypto. Bitcoin rallied 10.48% to $69,000 and put the psychological $70,000 level in sight. Will this rally continue next week if no major macroeconomic data is released?â
BTC exchange-traded funds (ETFs) saw significant inflows throughout the week. Friday alone saw $203.3 million in inflows, capping a six-day streak of gains. The steady inflows into ETFs indicate continued strong institutional demand.
With the SECâs approval to list BTC ETF options on the NYSE, analysts believe this will provide the necessary liquidity to attract sustainable inflows into these funds.
Currently, Bitcoin's dominance rate is at 58%, its highest level since April 2021. As it approaches the key resistance level of 60%, analysts believe this will set the stage for a strong recovery in Layer 1 coins.
Global economic factors at play
In Japan, inflation continued to decline, with headline inflation falling from 3.0% to 2.5%. Market expectations that the Bank of Japan (BOJ) will not raise interest rates in the near term contributed to the rise in USD/JPY, which is currently trading below 150.
Meanwhile, US stocks remain near all-time highs and the Japanese yen is showing signs of further weakness. As the US election approaches, risk sentiment is expected to strengthen, which could push risk assets like Bitcoin even higher and reinforce the âUptoberâ narrative.
What should crypto investors do?
Analysts point out that despite Bitcoinâs price rise, Ethereum (ETH) has yet to reach its desired levels, creating a potential buying opportunity. Furthermore, growing interest in Real World Assets (RWA) is leading to more trillion-dollar asset managers using the Ethereum network.
âWhile Bitcoin is just 7.9% away from its all-time high, Ethereum is still lagging, trading 45% below its peak. With an improved growth base, yields could become more attractive in the future.â