- Bitcoin (BTC) enthusiasts are celebrating as the cryptocurrency kicks off a period affectionately referred to as ‘Uptober.’
- According to CoinGlass, Bitcoin has not finished the month of October at a lower value than where it started since 2018. Therefore, the ‘Uptober’ label holds significant value within the crypto community.
- From a macroeconomic perspective, Bitcoin traders are enjoying positive price movements while US macroeconomic data is beginning October on a quiet note.
After the macro data silence in the US, a sudden rise began in the Bitcoin market: Investors will watch the statements of the FED Chair today.
Developments in the US Trigger Bitcoin’s Rise
Bitcoin (BTC) enthusiasts are celebrating as the cryptocurrency kicks off a period affectionately referred to as ‘Uptober.’ This positive rally coincides with a time of relative macroeconomic quietness in the United States, despite a last-minute avoidance of a government shutdown.
As October rolled in, Bitcoin (BTC) saw a 5% surge that briefly touched $28,488, signaling the beginning of a new uptrend. This move erased the less impressive performance observed in the weeks leading up to mid-August and marked the start of a hopeful period for market analysts and crypto enthusiasts.
Trader Michaël van de Poppe hinted that this could be a sign of an upward trend while also mentioning the possibility of a complete retracement. However, he emphasized that every Bitcoin consolidation period presents an opportune moment for altcoins to catch up, setting the stage for an interesting scene in the last quarter of 2023.
Furthermore, a promising start to October contradicts the cryptocurrency’s performance in the same month last year. Historical data also indicates that October is generally a supportive month for Bitcoin bulls. According to CoinGlass, Bitcoin has not finished the month of October at a lower value than where it started since 2018. Therefore, the ‘Uptober’ label holds significant value within the crypto community.
Macro Triggers and Bitcoin’s Path
From a macroeconomic perspective, Bitcoin traders are enjoying positive price movements while US macroeconomic data is beginning October on a quiet note. The expected government shutdown was successfully avoided, with a contentious point related to aid for Ukraine resolved. This week, market participants will closely watch for clues from Federal Reserve officials’ speeches ahead of the Federal Open Market Committee (FOMC) meeting on November 1.
Additionally, today, Federal Reserve Chairman Jerome Powell will deliver a speech, which will be closely monitored by market participants. Powell’s speech will begin at 15:00 UTC.
Financial commentator Ted Talksmacro also noted the divergence between net US dollar liquidity and BTC/USD. This analysis suggests that Bitcoin is likely to follow a sideways or upward trend in the coming years, with potential short-term fluctuations before a faster rise.
However, Bitcoin’s mining difficulty is predicted to drop by 0.7% following the automatic adjustment, contrary to the trend associated with subdued market sentiments. This slight change occurs amidst a competitive mining landscape and record-high hash rates, demonstrating miners’ long-term commitment to the network.
The promising start of ‘Uptober,’ hinting at independent market dynamics in the face of a quieter macroeconomic landscape in the US, is a comparison that will continue to be closely monitored by investors and analysts as Bitcoin’s journey in October unfolds.
