Key Takeaways
- The crypto market surged massively today, hitting a valuation of $4.31 trillion.
- The rally was led by Bitcoin as the BTC price managed to hold above the $125,000 level since the weekend.
- Ethereum, XRP, and other altcoins also showed positive price action.
The global crypto market reached its highest point of $4.31 trillion on Monday. The bullish sentiment is attributed to the renewed investor confidence as well as the mounting speculations of a U.S. Federal Reserve rate cut later this month. Bitcoin (BTC) led the pack, establishing a new all-time high of over $125,700 and stabilizing around $125,600 on Monday, a 10% increase over the last week.
Bitcoin has since increased in six trading days in a row, surpassing traditional assets, as institutional inflows into the U.S.-traded spot Bitcoin exchange-traded funds (ETFs) hit all-time highs. It was in mid-August that the digital asset recorded its last record of reaching $124,474 before leveling off in the month of September.
Institutional Inflows Power the Momentum of Bitcoin ETFs
Spot Bitcoin ETFs have registered the second-largest weekly net inflows of $3.24 billion since launch in January 2024. The iShares Bitcoin Trust account established by BlackRock represented a figure of $1.8 billion in inflows, with Fidelity FBTC contributing to $692 million. The ETFs saw a turnaround after a preceding week of outflows amounting to $902 million, which makes the total inflows within the past month nearly equal to $4 billion.
Market analyst Simon Peters of eToro believes that the recent boom points to the increased institutional interest in the face of macroeconomic uncertainty. Moreover, analysts expect further uptrend for Bitcoin and the crypto market as a whole as altcoins tend to mirror BTC’s surge, according to historical trends.
Macro Factors: Rate Reductions, Bets, and Dollar Weakness
CME FedWatch tool shows a 94.6% probability that the Federal Reserve will cut its rate by 25 basis points in its next meeting on October 29. Fed rate cut speculations grew when the data on employment in the private sector of ADP reported a contraction of 32,000 jobs, contrary to predictions of a 50,000 increase. The current shutdown by the U.S. government has postponed the official data on the nonfarm payrolls, which has increased investor worry and driven people towards other assets.
The U.S. dollar has declined by approximately 30% against Bitcoin since January, which also adds to the valuation of digital assets. Washington political gridlock and fiscal pressure have also fueled what analysts have termed a debasement trade as investors switch to Bitcoin and gold to ensure against currency debasement.
Today’s Market Overview
Bitcoin Price: $125,672.65 +2.36%
Total Crypto Market Cap: $4.31 trillion +2.84%
Ethereum Price $4,703.48 +4.47%
XRP Price $3.03 +2.42%
Stablecoin Market Cap $300 billion (+47% YTD)
Major Strategists In the Latest Crypto Market Rally.
The existing market is driven by six major forces:
- Increased anticipation of a Federal Reserve cut this month.
- Weak U.S. dollar and global fiat insecurity.
- Recurrent shutdown by the U.S. government creates fiscal uncertainty.
- The first time in the history of the stablecoin market, the market capitalization reached the mark of more than $300 billion.
- Quickening institutional investment with the help of ETFs and treasury allocations.
- Crypto market’s strong historical performance in October, usually dubbed as “Uptober.”
- U.S. national debt is nearing the $38 trillion mark, with $6 billion added every day, which establishes BTC as a hedge against debt crisis fears.
Technical Analysis Major Resistance/Support Zones
The progress of Bitcoin has received opposition between $124,000 and $125,700, a region that constitutes a significant supply group. That zone was breached by the price on Sunday, which then declined a little, indicating the possible short-term profit taking.
The support levels are determined to be at $120,000, which corresponds to the highest in July and forms the 50-day exponential moving average (EMA) at $115,184, and additional support at about $112,000. The wider safety range is at around $108,000 to $109,000, which is near the 200-day EMA of $107,400. The $100,000 mark is still a psychological cushion between a correction and a wide shift in trend.
Crypto Market’s Uptober Seasonality
Ethereum rose by over 12% this week and stood at $4,564, whereas XRP broke above $3, gaining around 5%. The other altcoins also gained with the aid of increased liquidity and the growth of stablecoins. Past records indicate that Bitcoin has been performing at an average of 22% during October, which recorded gains in 10 out of 13 years.
The bullish trend is not only confined to Bitcoin because the investors look forward to further expansion of policies, and this goes in line with the seasonal patterns that have in the past enhanced the performance of crypto assets in the fourth quarter. Further, Binance Coin (BNB) aligned with the sentiment, soaring to a high of $1,237 today.
Read More: Standard Chartered Sees $1 Trillion Shifting From Banks to Stablecoins; When Will It Happen?
