Bitcoin’s price has surged to $65,000 for the first time since early August, fueled by several macroeconomic factors that are pushing investors toward risk assets.
This resurgence has sparked optimism within the crypto community that Bitcoin could see a further rally, potentially reaching $80,000 during what has been termed “Uptober,” a historically bullish period for Bitcoin. While specific events and economic conditions drive this optimism, some analysts caution that the market may face significant volatility in the coming weeks.
Macroeconomic Factors Boost Bitcoin’s Momentum
One of the primary drivers behind Bitcoin’s current price momentum is the series of macroeconomic developments that have boosted the broader crypto market. Key among these is the decision by the U.S. Federal Reserve to cut interest rates by 50 basis points (bps), which has led investors to reallocate capital toward riskier assets like Bitcoin.
In addition to the Fed’s action, the People’s Bank of China (PBoC) has implemented its own interest rate cuts and introduced stimulus policies to stimulate its economy, which is seen as another positive factor for Bitcoin’s price performance.
These developments are expected to increase liquidity in the financial markets, which could flow into Bitcoin and other cryptocurrencies. As world governments continue implementing monetary easing policies, this liquidity could fuel further growth in the Bitcoin market, especially as demand for risk assets remains strong.
U.S. Economic Indicators Support Crypto Investment
Recent U.S. economic data has also helped boost investor confidence in Bitcoin. The latest GDP figures and jobless claims show that the U.S. economy is performing well, further supporting the Federal Reserve’s stance on continued interest rate cuts.
This ongoing monetary easing is seen as a critical factor for Bitcoin’s bullish outlook in October, as more capital is expected to enter the market. Additionally, reports indicate that Bitcoin could target higher prices, with some projections even suggesting a potential rally to $100,000.
Market Indicators Show Potential for Continued Rally
The prices at the time of writing was valued at $65,649.17 with trading volume of $25.2 million. Within the past 24 hours, the respective asset has only risen to 0.40%. Bitcoin remains on top of the rank on CoinMarketCap with a circulating supply and market cap reaching $1,300 trillion.
The prices overall exhibit a high volatility during the 24 hours. The asset started at around $65370, and there were price changes during the day. Notably, Bitcoin spiked to approximately $66,400 around 8:00 PM and after that teeters and swings between high and low levels.
Source: CoinMarketCap
Another peak occurred near 4:00 AM, but the price ultimately settled at $65,660 by the end of the period. Despite volatile behaviour, this overall increase reflects an active market with substantial trading activity.
The MACD (Moving Average Convergence Divergence) indicator, a key measure of momentum, currently shows bullish signs. The MACD line crosses above the signal line, which is typically viewed as a signal of increasing upward momentum.
Source: TradingView
The Relative Strength Index (RSI) is currently at 66.15, nearing overbought territory. This suggests that while the market remains bullish, there could be some selling pressure if Bitcoin continues to rise at its current pace.
The post BTC Price Forecast October: Bitcoin Surges to $65K With Fed Cuts: But Will the Market Break $80K? appeared first on Coinfomania.
