Bitcoin price today: Rebounds after a brief dip, what's next in 'Uptober'?
Bitcoin has rebounded after briefly dipping below the $63,000 mark earlier this week. Now sitting at $63,950, the leading cryptocurrency closed September with a 7.3% gain, marking its best performance ever for this month.
"The past few days have been a hot pot of coinciding events that simultaneously reignited optimism in global markets, with crypto at the forefront. Bitcoin is once again experiencing the pull of FOMO (Fear of Missing Out), suggesting the market is primed for further gains," Kristian Haralampiev, Structured Products Lead at Nexo, told Investing.com.
“However, this bullish outlook is tempered by warnings such as peaking social sentiment, signaling potential hurdles ahead before even more bullish times arise.”
The broader cryptocurrency markets took a hit on Monday, with Bitcoin falling by 3.7%, while other coins like Ethereum and Solana saw smaller losses of 2.8% and 1.9%, respectively. Several altcoins, including Ripple , Cardano , Polkadot , and Chainlink , dropped more than 5%.
Crypto-related stocks also felt the heat, with major miners such as Marathon Digital (NASDAQ:MARA ), Bitdeer Technologies Group (NASDAQ:BTDR ), Hut 8 Corp (NASDAQ:HUT ), and CleanSpark (NASDAQ:CLSK ) losing between 5%-10%. America’s largest crypto exchange Coinbase (NASDAQ:COIN ) saw a 6% drop, while MicroStrategy Incorporated (NASDAQ:MSTR )closed down more than 3%.
Meanwhile, U.S. equity indexes remained mostly flat throughout the day, but slid lower towards the session's end. Federal Reserve Chair Jerome Powell addressed rate cut expectations, stating that while additional cuts are planned, they may not be as aggressive as previous ones.
Despite the market’s volatility, Bitcoin continues to show resilience. Historically, September has been a challenging month for Bitcoin, but this year’s gains have set up October to potentially be even stronger.
Known in the crypto world as "Uptober," Bitcoin has seen positive returns in nine of the last 11 Octobers since 2013. ‘Unexpected setbacks’ coming?
Despite recent optimism, analysts at research firm Canaccord Genuity advise caution. In a recent report, the broker noted that widespread bullish sentiment could lead to unexpected setbacks.
"We think the most healthy reaction for crypto’s long-term future in a scenario like this would be a decline in BTC, reflecting less of a need for an inflation hedge with rates falling and a rise in ETH and other crypto assets along with risk equities as investors become more willing to underwrite longer-term growth and innovation."
Canaccord analyst further explains that Bitcoin’s halving cycle is often “a critical driver of its price action,” and we are now 163 days post-halving. Historically, major BTC rallies begin around 6-12 months after halving events, so “we could see a notable rally soon if previous patterns hold true.”
Despite ongoing macroeconomic uncertainties, Bitcoin traders remain optimistic about Q4. Powell’s comments follow a positive period for major cryptocurrencies, as Bitcoin recorded its third consecutive week of gains.
Source: Investing.com