Bitcoin’s Surge and Market Impact
The cryptocurrency market ended the week on a flat note after Bitcoin (BTC) reached its highest price since May 2022 on Tuesday. The surge in Bitcoin’s price has reignited optimism across the cryptocurrency ecosystem, reminding traders of the bull market. However, stocks traded mixed, with a downward trend dominating the market.
Federal Reserve and Inflation Concerns
The Federal Reserve’s preferred inflation metric, the core Personal Consumption Expenditures (PCE) index, showed a significant increase in prices. Prices rose by 0.3% in September, marking the highest month-over-month increase since May, and 3.7% from the previous year. This data has led investors to believe that the Fed will need to keep interest rates higher for a longer period. There are also speculations that the central bank may raise rates further if inflation starts climbing again.
Stock Market Performance
At the closing bell, the S&P and Dow finished down 0.75% and 1.33% respectively, while the Nasdaq gained 0.30%. The market data shows that Bitcoin faced selling pressure in the afternoon, resulting in a drop to a low of $33,395. Currently, BTC is trading at $33,800.
Bitcoin’s Future Outlook
Senior technical analyst Jim Wyckoff stated that October Bitcoin futures prices were weaker in early U.S. trading on Friday. However, the recent price action has formed a bullish pennant pattern on the daily bar chart, giving Bitcoin bulls a near-term advantage. Michaël van de Poppe, founder of MN Trading, highlighted the range between $32,600 and $33,100 as a good long entry point, with resistance at $34,700 to overcome. Crypto Tony predicts a spike to $36,000 before a correction to the low $30,000 range.
Altcoins and Market Cap
Altcoins in the top 200 of the cryptocurrency market saw mixed trading results, with some minor losses to end the workweek. Loom Network (LOOM) bounced back with a 15.34% increase, followed by Injective (INJ) with a gain of 13.9%, and Neo (NEO) with an 11.4% increase. On the other hand, Liquity (LQTY) was the biggest loser with a decline of 13.9%. The overall market cap of cryptocurrencies stands at $1.24 trillion, with Bitcoin’s dominance rate at 52.9%.