Cryptocurrency Market Ends Week on Uptrend
The cryptocurrency market closed the week of September 28 through October 2 with mostly positive performance, according to Fixygen. Bitcoin (BTC) surpassed the $86,000 mark, while Ethereum (ETH) approached $2,750. The market's uptrend can be attributed to a decline in expectations regarding further monetary tightening by the U.S. Federal Reserve, following weaker-than-expected U.S. labor market data. This led to a decrease in Treasury yields, making a Fed rate hike in October less likely.
The growth in the cryptocurrency market was also driven by the liquidation of short positions, with over $300 million in liquidations over the course of a single day. The market's recovery is a continuation of a strong third quarter, with Bitcoin rising over 40% and Ethereum rising over 70% since July. However, both cryptocurrencies remain below their all-time highs set in 2025.
Citigroup raised its 12-month price forecasts for BTC and ETH, citing increased activity, changes in the macroeconomic situation, and the resumption of capital inflows into cryptocurrency ETFs. The bank's new forecasts place the price of BTC at $113,000 and ETH at $3,028.