Bitcoin Broke over $ 120,000, a level not seen since mid -August, when dealers are positioning for a bullish October for risk assets.
The token has climbed steadily for the past five days and recovered from a withdrawal at the end of September. Analysts point to renewed optimism about macroeconomic headwinds that can increase risk assets in the last quarter of the year.
In the derivative market, BTC Futures Bullish is flashing signals with open interest rates that reach a record height of $ 32.6 billion, suggesting that dealers are placing for additional upside. On-chain analyst Skew noted that short positions are also poured up, which could create an opportunity for a short clamp.
Dealers will especially be focused on the next FED meeting at the end of this month, which could happen without access to a fresh job report in the middle of the government. Treasury -Secretary Scott Bessent told CNBC on Thursday that shutdown could further weaken the economy
“We could see a hit for GDP, a hit for growth and a hit for working America,” he said.
Although historically the effect of a government’s shutdown on the economy has been less, President Donald Trump’s threat of shooting approx. 750,000 federal workers have an influence in the current climate.
Crypto appetite could also be burned by hope of an incoming altcoin season as several applications for altcoin-related spot exchange-traded funds (ETFs) are likely to see approval when the government reopens again.
Canary Capital’s Litecoin ETF is due to an answer today with others facing deadlines between 10 and 24 October. Securities and Exchange Commission (SEC), confirmed on Wednesday that it will not undergo any applications during the shutdown.
Like Bitcoin, Altcoins traded higher over the last 24 hours, led by Which had risen almost 3%. The Coindesk 20 index, which tracks the performance of the 20 largest crypto assets, is 1.5% higher in the same period.
Paul Howard, senior director of crypto trading company Wincent, was skeptical earlier this week about Bitcoin’s rebound, but he turned Bullish to see the strength of the last days of progress.
“With $ BTC trading back at levels last seen in mid-July, the total market capital is again over $ 4 trillion,” he noted. “We’ve seen a slow grinding higher break over $ 115,000, indicating that we are now more likely to stay above this level, with a CME hole to lock on the floor for $ 110,000.”
“I think we’re now ready to see a sustained rally over $ 120,000 in the coming weeks,” he added.
