DailySun
Bitcoin has surged to unprecedented levels, driven by a wave of safe-haven investments, significant inflows into exchange-traded funds, and a rise in the Fear and Greed Index.
Summary
- The latest increase in Bitcoin underscores a resurgence of investor confidence, fueled by improving market conditions, expected rate cuts from the Federal Reserve, and heightened interest in spot ETFs.
- This favorable macroeconomic landscape, combined with seasonal strength and a rising risk appetite, positions BTC for another potential surge, signaling that the largest cryptocurrency may be entering a phase driven by institutional investment.
Bitcoin Price Increase Fueled by Rising Crypto Fear and Greed Index
The value of Bitcoin (BTC) has continued to climb as investors embrace a risk-taking approach. This shift is evident in the ascending Crypto Fear and Greed Index, which has moved from the fear zone of 39 in September, approaching the greed zone at 60.
Historically, Bitcoin and other cryptocurrencies have seen substantial gains when the index trends upwards, with momentum building as it nears extreme greed levels.
The uptick in BTC price is also linked to its perception as a safe-haven asset, akin to gold. Inflows into spot BTC ETFs have surged in light of potential government shutdowns.
As per SoSoValue data, these ETFs have now amassed over $3.2 billion in assets, pushing their total inflows past $60 billion. BlackRock’s IBIT ETF currently commands over $96 billion in assets, placing it among the top 20 largest ETFs worldwide.
With investors gearing up for a Federal Reserve rate cut this month, Bitcoin’s price has reached record-breaking levels. The Fed has already slashed rates by 0.25%, bringing the benchmark to a range between 4.0% and 4.25%.
The possibility of further cuts grew following disappointing employment figures from ADP and the Bureau of Labor Statistics. The BLS report indicated that the number of unemployed persons surpassed job openings.
Furthermore, ADP’s report showed a decrease of 36,000 jobs in September, following a drop of over 3,000 the prior month. These statistics imply a weakening labor market, compelling potential action from the Fed.
Seasonal patterns have also played a role in the ongoing Bitcoin price rise, as historical trends indicate that Bitcoin typically performs well in October and the fourth quarter.
BTC Price Technical Analysis
The weekly chart reveals that BTC has maintained a strong bullish trend this year, presently achieving a historic peak of over $125,500, breaking through the upper limit of the bullish flag pattern.
Additionally, according to the Murrey Math Lines tool, Bitcoin has reached a crucial pivot reversal point and remains above all moving averages.
Thus, the most likely projection indicates ongoing upward movement as bulls target the ultimate resistance level at $150,000. Surpassing this mark could pave the way for further gains, potentially hitting an extreme overshoot target of $175,000.
