As Q3 comes to a close, Bitcoin price has maintained resilience with a 8% surge in September. The robust performance has contributed to BTC growing reputation as a risk-on asset in global markets. Several factors are aligning to suggest that Bitcoin could surge past the $70,000 mark in October as the “Uptober” phenomenon kicks in.
Bitcoin Price To Breakout Above $70,000?
The S&P 500, up 5.1% for the quarter, has marked its best year-to-date performance since 1997. Moreover, global market sentiment remains risk-on. China’s CSI 300 Index jumped by 9% on the back of the country’s largest property support package in years, further boosting confidence in broader market growth.
Goldman Sachs’ prime brokerage data shows hedge funds increasing their long positions on IT stocks, indicating that institutional investors remain bullish on high-growth sectors. This optimistic environment has also benefited Bitcoin price, according to QCP Capital analysts. Additionally, these analysts foresee a surge beyond $70,000 for BTC.
However, as Q3 earnings begin in mid-October, market participants may reassess current valuations. Historically, equities have faced pressure during earnings season, potentially leading to a retracement. QCP Capital, in its latest analysis, suggests that any equity retracement could see capital flow into alternative assets like Bitcoin. This is due to BTC’s strong correlation with risk-on sentiment during periods of global monetary easing.
In addition, the fourth-quarter Federal Reserve interest rate cuts could also benefit Bitcoin price significantly. The Bank of America (BofA) expects the U.S. Fed to cut rates by 0.75% in the next quarter. Low interest rates generally boost riskier assets like BTC as there’s more liquidity in the economy with borrowing costs reduced.
Current BTC Price Action
Bitcoin price has traded within a tight range recently, and QCP Capital highlights that significant profit-taking transactions typically occur at these levels. Yet, with positive market momentum and Bitcoin’s resilience in September, a breakout past the $70,000 mark could occur. QCP notes that a decisive move above this level could trigger further upside amid favorable macroeconomic conditions.
However, currently, BTC price is experiencing turbulence at $63,619.08, dropping 3.26% on Monday, September 30. This pullback could be a result of heavy profit-booking as traders sell their positions to realize profits from the rally induced by 50 bps Fed rate cuts earlier this month.
Also Read: BlackRock Bitcoin ETF’s $388M Buy Outpaces BTC Sold in 3 Weeks
Source: https://www.cryptonewsz.com/3-reasons-why-bitcoin-price-surge-70k-october/