According to Odaily, escalating tensions in the Middle East have led to cautious sentiment in global markets, resulting in a decline in the cryptocurrency market. Data shows that Bitcoin fell by approximately 4% in the first two days of October, contrasting sharply with its average 20% rise throughout October over the past decade. Sean McNulty, Head of Trading at liquidity provider Arbelos Markets, believes that this sell-off is a 'temporary setback' given that the Federal Reserve has begun lowering interest rates. He also suggests that the government following the U.S. presidential election in November may be more favorable towards the cryptocurrency industry. McNulty added, 'October is typically the best-performing month for Bitcoin, and this seasonal trend remains intact.'
Recently, the movement of digital assets has become more synchronized with the stock market, indicating that macroeconomic drivers such as the Federal Reserve's monetary policy outlook are currently crucial for Bitcoin. The 50-day correlation coefficient between the top 100 cryptocurrencies and the MSCI Inc. global stock index stands at 0.65, the highest level since 2022. A reading of 1 indicates that the assets move in sync, while a reading of -1 indicates they move in opposite directions.
