The cryptomarket started October with a green kick. After regaining the price level of over $114,000, the Bitcoin surged past the level of over 117,000, following the cause of fear of a US government shutdown and the weak private payrolls statistics. The money poured into risky assets. With crypto seen as an insurance against instability and a less harsh Federal Reserve path.
The Move is enhanced by Short Squeeze and ETF Inflows.
Glassnode data posted on-chain validated the fact that the $114K breakout had cascading short liquidations, contributing to the Bitcoin surge. The move was assisted by the ETF flows as spot Bitcoin ETFs recorded a 3,200 BTC inflow at the end of September. Ether rose more than 4300 and Solana topped altcoins with a 4.6 percent increase to $218.
The Macro Data and the Dollar are Heavy.
A bad ADP jobs report with a 32,000 drop in the payroll put further strain on the dollar and rate expectations. Market expectations of a Fed rate reduction went well above 90 percent in October. As government data releases were halted because of the shutdown, investors were relying on private signals cryptos gaining a respite.
Additional Tailwind of Uptober Sentiment Seasonality.
Being a bullish month in historic Bitcoin, the Uptober spirit was a momentum player. The market was also easier to move due to thinner liquidity caused by the Golden Week in Asia. Crypto markets might experience a prolonged upward trend with macro tailwinds. ETF demand, and a successful short squeeze in play. As long as the dollar remains weak and volatility does not reappear.
