Bitcoin Reaches new Heights Amid Positive Market Sentiment
Bitcoin has soared to unprecedented levels,driven by a mix of factors. Investor confidence is on the rise, thanks to improving market sentiment and expectations of Federal Reserve rate cuts. The Crypto Fear and Greed Index has climbed from 39 in September, nearing the greed zone of 60. This shift indicates a growing appetite for risk among investors.
Bitcoin is also gaining traction as a safe-haven asset, similar to gold. This is evident in the increasing inflows into spot Bitcoin ETFs. Despite the government shutdown, these etfs have added over $3.2 billion in assets, bringing their total to over $60 billion. BlackRock’s IBIT, with over $96 billion in assets, is now among the top 20 largest ETFs globally.
Investors are betting on more rate cuts by the Federal Reserve this month.The Fed has already cut rates by 0.25%, bringing the benchmark rate to between 4.0% and 4.25%. Weak jobs numbers from ADP and the Bureau of Labor Statistics have fueled these expectations. Seasonality is also playing a role, as Bitcoin historically performs well in October and the fourth quarter.
Technically, Bitcoin is in a strong bull run. It has reached a record high of over $125,500,breaking out of the bullish flag pattern. The coin is above all moving averages and at a strong pivot point. Bulls are targeting the $150,000 resistance, with potential for further gains to $175,000.
