Bitcoin Hits 8-Month High Amid Fed Rate Hike Uncertainty
Bitcoin started October strongly, closing the week above $86,000, the highest level in eight months. However, selling pressure prevented it from breaking past $87,000, pushing it back below that threshold. The market attributes Bitcoin's rise to positive economic data from the US, particularly the Personal Consumption Expenditures (PCE) and non-farm payrolls figures, which fell short of expectations. This weakened the likelihood of a Federal Reserve interest rate hike in October, dropping to 22% according to QCP Capital.
QCP Capital identified key levels for Bitcoin and Ethereum. For Bitcoin to confirm further gains, it must stay above $87,200. Ethereum, meanwhile, is showing cautious upward momentum, trading between $2,650 and $2,800, around $2,725, with continued buying interest at lower levels.
The analysis firm also highlighted upcoming events that could impact market volatility. These include the release of the FOMC minutes on October 7th, the TOKEN2049 conference in Singapore on October 8-9, and the US Consumer Price Index (CPI) data on October 14th. These developments are expected to shape market sentiment in the coming days.