Bitcoin (BTC) rose to above $65,000 and settled at $65,580 amid a 3% rise, as experts point to monetary policy easing, China stimulus, and increased activity on the chain as the main drivers of the current momentum.
Analysts now suggest that a fourth-quarter rally is likely, with targets set at $70,000 in the short term. Ethereum (ETH) also followed suit, rising 1.5% to trade at $2,665.
About $154 million was liquidated from positions worth the past 24 hours, with short positions bearing the brunt of the loss at $104.2 million compared to $49.8 million in long positions. This liquidation trend signals bullish market sentiment, especially as Bitcoin remains comfortably stable above the $65,000 level.
Speaking to Decrypt, Ian Lee, chief operating officer at derivatives exchange Flipster, identified recent price cuts in the US and China as key drivers behind Bitcoin’s current rally. “One of the main reasons for the current rise is the 50 basis point rate cuts in the United States, as well as the interest rate cut by the People’s Bank of China,” he said, adding that the current news surrounding the US presidential election on 5 November may further affect market movements.
Li also noted that the Fed’s monetary policy will be crucial in the coming months, noting that “the market is currently pricing in a chance of about 50:50 to cut interest rates by 50 basis points or 25 basis points at the FOMC meeting in November.”
He also highlighted the rise in activity on the chain on the Ethereum network in the wake of the recent rate cut by the Fed, suggesting that the early movers are preparing for a possible rebound of the total value closed (TVL) in decentralized finance (DeFi) due to more attractive returns.
Record Bitcoin ETF Inflows Amid Global Optimism
After facing weeks of uncertainty, Bitcoin ETFs [BTC] are gaining momentum again. Despite Bitcoin’s bearish September reputation, both the cryptocurrency and its associated ETFs have defied expectations of a trend reversal..
As of the latest data on September 26, the total inflows of all Bitcoin ETFs stood at $365.7 million..
Ark’s ARKB fund was in the lead with $113.8 million, followed by Blackrock’s IBT fund with $93.4 million. Fidelity’s FBTC fund recorded $74 million, while Bitwise’s BITB was $50.4 million..
VanEck’s HODL, Invesco’s BTCO andFranklin’s EZBC contributed inflows of US$22.1 million, US$6.5 million and US$5.7 million, respectively. Although two other smaller funds showed modest inflows of less than $5 million, the overall rise underscores investors’ renewed confidence in Bitcoin exchange-traded funds. On September 25, BlackRock, the world’s largest asset manager, saw an extraordinary $184.4 million rise in inflows to a Bitcoin exchange-traded fund, making it the highest one-day flow of the month for any fund..
The rise comes amid growing market speculation, possibly influenced by developments in Asia. For those who don’t know, Chinese stocks rose after reports that the Chinese government could inject up to 1 trillion yen ($142 billion) into its main state banks, aimed at boosting a recently challenged economy.
As the month draws to a close, Bitcoin showed a strong uptrend with an impressive monthly rise of 10.98%, indicating sustained bullish momentum in the market.
Earlier in the week, the People’s Bank of China took mitigation measures by lowering the reserve requirement ratio for mainland banks by 50 basis points and cutting the seven-day reverse repo rate by 20 basis points to 1.5%.
Bitcoin and altcoins rise amid market optimism
Bitcoin’s recent jump past the $65,000 mark has sparked a wave of excitement and fear of missing out on the opportunity (FOMO) among investors. According to Marcus Thelin, head of research at 10xResearch, in a report seen by Cointelegraph, the probability of a bullish rally in the fourth quarter is “exceptionally high,” with potential gains hot and heavy. Since Bitcoin (BTC-USD) is trading at $65,397, analysts are curious about what this means for altcoins, as speculators rush to return.
Altcoins rise as Bitcoin dominates
The return of the fear of missing out has reignited interest in altcoins, which have seen a rebound in trading volume. Thelin notes, “There could be a significant increase on the horizon, leading to more fear of missing out on the opportunity throughout the crypto space.” Capriole Investments’ altcoin speculation index jumped to 23%, up 13% from last month. This index measures the percentage of altcoins that outperform Bitcoin, indicating high investor confidence in the cryptocurrencies. Alternative cryptocurrencies. For example, the value of SEI (SEI-USD) rose 37.79% in the past week alone, while Shiba Inu (SHIB) led the trading volume in South Korea, indicating a growing appetite for riskier investments.
The price of Bitcoin has shown remarkable resilience on the price front. After struggling to break the $60,000 barrier for several days, the leading cryptocurrency soared, reaching $65,642. This represents a gain of 2.89% in the last 24 hours.
As the month draws to a close, Bitcoin showed a strong uptrend with an impressive monthly rise of 10.98%, indicating sustained bullish momentum in the market.
Greed Index Rises Amid Market Optimism with Crypto Fear & Greed Index Now Showing ‘Gred’ Grade of 61 – Up 11 Points Since Sept. 26
