Bitcoin's Price Surge Faces Crucial Tests as Fed Meeting Looms

Bitcoin's recent price surge has left many wondering if it can continue to rise in October. The cryptocurrency has gained 43.8% over the past 90 days, rising from about $57,800 in early July to around $84,000 on September 30.

However, despite this rebound, Bitcoin remains well below its record high of $126,080, which was reached last year on October 6. The Federal Reserve's upcoming meeting on October 27-28 could play a significant role in determining the cryptocurrency's next move.

A stronger-than-expected interest rate hike by the Fed could weigh heavily on Bitcoin, as it does not pay interest or dividends. On the other hand, a pause in rate increases could provide support for the cryptocurrency.

Oil prices above $100 a barrel are also adding to the uncertainty surrounding Bitcoin's price. If higher energy prices contribute to inflation pressures, expectations for tighter monetary policy could negatively impact cryptocurrency prices.