In trading and investing, what matters is not how much money you make, but how much money you don't lose.
The total cryptocurrency market capitalization has surged 2% over the past 24 hours to around $2.28 trillion during early European trading on Saturday, October 12. The altcoin sector experienced a knee-jerk reaction after the price of Bitcoin (BTC) surged to a range high of around $63,361 during mid-session trading in New York on Friday.
The significant rally in cryptocurrencies over the past 24 hours has not resulted in significant liquidations. Additionally, volatility is expected to increase over the weekend after Bitcoin prices fell below $59,000 for the first time in three weeks.
The main forces behind today’s cryptocurrency surge
After several days of losses, U.S. spot Bitcoin ETFs saw a net inflow of more than $348 million on Friday. BlackRock's IBIT had the highest cash inflow on Friday, about $140.7 million, followed by Fidelity's FBTC, about $117 million.
Meanwhile, spot Ethereum ETF issuers recorded net cash inflows of about $2 million on Friday. As a result, the net supply of Bitcoin on cryptocurrency exchanges has decreased by about 10,000 in the past week, while the supply of Ethereum has decreased by about 24,600 in the past 24 hours.
Bitcoin price has reclaimed key support levels following its recent rally. From a technical perspective, Bitcoin price has formed a fractal pattern similar to the bull breakout in the second half of last year.
A sustained rally above $66,000 would trigger the return of FOMO traders, helping to propel Bitcoin prices to all-time highs.
This situation will affect the entire altcoin industry, leading to a significant rise in cryptocurrencies in the coming months.
The bullish sentiment in October is gradually picking up, and Bitcoin price is expected to continue its upward trend in the near future.
The 2024 US election will take place in about three weeks, and historical data shows that this has sparked bullish sentiment.
Gold and major stock indices have been leading bullish breakouts recently.
Rate cuts and market expectations
The recent trend of interest rate cuts is a major factor affecting market sentiment. While liquidity may take several months or even more than a year to permeate the wider market, the cryptocurrency investment community often anticipates such changes. This forward-looking nature means that prices can begin to rise based on expectations rather than immediate changes in monetary policy.
Taking these factors into account, the market is expected to perform well in 2025. Investors who adopt a long-term investment strategy and consider broader macro trends rather than focusing solely on short-term fluctuations are more likely to achieve strong returns.
Adopting a "big picture" investment strategy that is consistent with the overall cycle trajectory may bring more substantial returns than short-term strategies. Historical indicators show that this bull market cycle will reach another level, and current market conditions may provide significant opportunities for long-term investors.
Bitcoin's current market trend clearly shows that the bull market cycle is still unfolding
In addition, the US producer price index (PPI) data for September was released last night, with the annual growth rate falling to 1.8%. Although it is still higher than the expected 1.6%, the downward trend has led the market to expect that the consumer price index (CPI) will continue to fall, thus increasing bets on the Fed to continue to cut interest rates.
When the Federal Reserve is irreversibly on the path of interest rate cuts, the blood-sucking market of A-shares has come to an end temporarily, and the time for BTC to launch a crypto bull market is getting closer and closer.
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WIF
Dogwifhat (WIF), a meme coin based on competitor Solana, was another strong performer on Friday. WIF rose 13% on Friday to around $2.76 and is testing key resistance levels. In fact, WIF appears to have formed a bullish ascending triangle structure, suggesting a strong likelihood of a near-term breakout.
WIF could quickly rise by nearly 2x. But as the leading Solana meme coin, WIF’s strong long-term outlook suggests it’s a candidate for the best cryptocurrency to buy right now.
However, memecoin investors looking for greater upside potential need to get into newer, smaller memecoins before they start to gain popularity.
