Crypto Market Sees 1.4% Rise as Fed Rate Hike Concerns Ease

The cryptocurrency market has seen a 1.4% increase over the past 24 hours to reach $2.92T, driven by expectations that the Fed will pause its rate hikes and a decline in the likelihood of an October policy tightening.

This is the fourth consecutive month to start on a positive note, with October historically being a good month for cryptocurrencies. The market may attempt a fresh breakout, surpassing September's highs, as it has consolidated in recent days.

Bitcoin is testing $86-87K and could target $94K if successful in breaking higher. However, the release of US labour market statistics could either accelerate the rally or reverse the trend, with markets potentially pricing in a Fed rate rise in October once again.

Citigroup has raised its 12-month forecast for Bitcoin from $82K to $113K, attributing the revision to increased activity in the crypto market and a favourable macroeconomic backdrop. The payment system Visa and British banking group Lloyds have also tested round-the-clock settlements using the USDC stablecoin.