#BTCUptober Macro, Ethereum, and Fed rate cuts $ETH
Ethereum, while typically performing well in October, has shown more modest average returns of approximately 5% over the past eight Octobers. However, significant ETH October call option purchases were observed on the first day of the month, indicating bullish sentiment.
The Bitfinex Alpha report highlights several bullish factors for Bitcoin as it enters the fourth quarter. The Federal Reserveâs potential rate cuts contribute to optimism, with Fed Chair Jerome Powell suggesting another 50 basis point cut this year. Bitcoinâs recent 26.2% surge since its September 6 correction, breaking through the $65,000 mark, further supports the positive outlook.
However, the report also notes warning signs that could threaten Bitcoinâs performance. Spot market buying activity has been flattening, suggesting a temporary balance between buyers and sellers. Additionally, Bitcoin futures have registered $35.3 billion in open interest, a level often associated with local market peaks and potential âoverheating.â
Despite these concerns, Bitfinex analysts believe a 5% to 10% pullback would be sufficient to cool the market without ending Bitcoinâs recent uptrend. The alpha cryptocurrencyâs consolidation between $50,000 and $68,000 mirrors its 2020 pre-halving pattern, where an October rally led to significant price increases.
As âUptoberâ begins, traders are exploring strategies to capitalize on potential breakouts. One suggested trade idea involves a Bitcoin Call DIGI (75k 25-OCT) with a 6.5x payout potential, based on a $64,000 spot reference.
With historical data suggesting strong fourth-quarter performance and various bullish indicators present, the crypto market watches closely to see if Bitcoin can maintain its âUptoberâ momentum and potentially reach new heights in the coming weeks.
