Bitcoin Exceeds $60,000 Once Again

CoinDesk 20 Index: 1.8691.17 +1.14%

Bitcoin (BTC): $61,425.69 +0.92%

Ether (ETH): $2,381.70 +0.9%

S&P 500: 5,699.94 -0.17%

Gold: $2,659.14 +0.13%

Nikkei 225: 38,635.62 +0.22%

Bitcoin’s slow start to October, traditionally its biggest rally, continued with the cryptocurrency falling below $60,000 late yesterday but showing signs of a rally ahead of the weekend. The cryptocurrency is currently trading around $61,300, up just under 1% in the last 24 hours. The digital asset market, as measured by the CoinDesk 20 Index, increased by approximately 1.15% during the same period. BTC is down nearly 6% since the beginning of October, even though it’s only been 4 days, and bitcoin ETFs have recorded net outflows on all three days of the month.

Although October has been a productive month for BTC surges, data shows that most gains do not come until the second half of the month. According to CoinGlass data, the second and third days of October have ended in the green only six times since 2013 before rebounding in the second week, with big moves usually in the third week. Price increases of up to 16 percent usually occur after October 15. However, this year bitcoin bulls should also consider macroeconomic factors weighing on risk assets. Rising tensions in the Middle East caused investor sentiment to shift to oil and gold.

In its research report published yesterday, JPMorgan (JPM) said that geopolitical tension and the upcoming US presidential elections will likely support “debasement trade” and that this will favor both bitcoin (BTC) and gold. “A Trump win, in particular, will strengthen this situation through both geopolitical tension and fiscal policy, as well as supporting bitcoin from a regulatory perspective,” wrote analysts led by Nikolaos Panigirtzoglou. Markets have not yet priced in the possibility of a repeat victory for the former president. The report stated that this is because investors have been engaged in recession trading in recent months.

The chart shows the monthly changes of bitcoin prices in yen. The long tails attached to the previous two candles indicate that sellers have exhausted themselves at a level close to the previous record high of JPY 7.79 million reached in November 2021. The recovery from the previous peak indicates a renewed rise ahead indicates price movement.Source: TradingView