Bitcoin Soars Above $86,000 as Federal Reserve Hopes Lift Uptober
Bitcoin's 'Uptober' momentum is building as the cryptocurrency surged above US$86,000 on Friday and maintained those gains through the weekend. The latest rally has been supported by growing expectations that the Federal Reserve may hold interest rates steady rather than deliver another increase.
Recent softer US employment data, combined with comments from Federal Reserve officials suggesting policymakers have time to assess the economy, have reduced fears of an immediate rate hike. That matters for cryptocurrency markets because lower expectations for interest rates can weigh on Treasury yields and improve the relative appeal of higher-risk assets such as Bitcoin.
The return of institutional demand, with US spot Bitcoin ETFs attracting a combined US$134.4 million during the first two trading sessions of October, is also providing a boost to Bitcoin's price. The cryptocurrency gained more than 40% during the September quarter, its strongest quarterly performance in almost two years.