Bitcoin prices nearly hit an all-time high on October 3, approaching $124,000, reflecting a surge in demand and positive momentum in the cryptocurrency market. This increase marks the highest trading level since August, as reported by Coinbase data from TradingView.
The recent upward trend has attracted the attention of various analysts, who highlight a range of factors contributing to Bitcoin’s performance. George Kailas, CEO of Prospero.ai, remarked on the momentum-driven nature of the current market, suggesting that recent confidence regarding potential rate cuts has played a significant role. He noted that Bitcoin is perceived as a hedge against government dysfunction, a belief that, while still under scrutiny, is driving the asset’s surge in a market heavily influenced by perception.
Brett Sifling, a wealth manager at Gerber Kawasaki Wealth & Investment Management, echoed these sentiments, pointing out that softer-than-expected job data has increased the likelihood of an October Federal Reserve rate cut. This scenario is generally favorable for riskier assets like Bitcoin. Additionally, Sifling observed solid demand for spot ETFs which supports Bitcoin’s growth, coupled with the arrival of October, historically seen as a beneficial month for the cryptocurrency, often referred to within the community as “Uptober.”
Joe DiPasquale, CEO of BitBull Capital, provided insights into the mix of bullish variables driving Bitcoin’s recent rise. He mentioned strong inflows into spot ETFs and institutional demand as key factors creating steady buying pressure. The anticipation of Fed easing has further bolstered the appetite for risk assets. He pointed out that U.S. political uncertainty and supply constraints following a recent halving event have enhanced Bitcoin’s perception as “digital gold.” Consequently, momentum traders are entering the market as Bitcoin nears its previous highs, creating a self-reinforcing rally.
Research head Julio Moreno of CryptoQuant analyzed the Coinbase Premium Index, which tracks the price divergence between Coinbase Pro and Binance. He noted that the upward price movement signifies increased U.S. investor demand, currently at its peak level since early June. Historically, U.S. demand has been a major driver in Bitcoin price rallies.
Tim Enneking, managing partner of Psalion, characterized the current situation as remarkable, emphasizing the substantial interest from various entities and suggested that the U.S. may soon become a significant player in Bitcoin purchases. He pointed out that throughout much of the year, public institutions have been purchasing Bitcoin at a rate that surpasses the amount generated by miners, suggesting a clear directional pressure on prices due to the supply-and-demand dynamics at play.
