Originally published on: October 04, 2024
The crypto market is buzzing with excitement as Bitcoin hits an intraday high on Oct. 4, reaching $62,338. This surge comes on the heels of stronger-than-expected job data for September and bullish onchain metrics, setting the stage for what some are calling an “Uptober” rally in the fourth quarter.
September’s US nonfarm payroll report exceeded expectations, with 254,000 new jobs added and the unemployment rate dropping to 4.1%. As a result, the market is anticipating a 97% likelihood of a 25 basis point interest rate cut at the Federal Reserve’s upcoming meeting on Nov. 7.
In addition to these positive indicators, Bitcoin’s balance on centralized exchanges has plummeted to its lowest level in six years. With over 2.8 million BTC held on exchanges, this marks a significant decrease from previous months and is a key factor driving the belief in a fourth-quarter rally.
When there is a low balance of Bitcoin on exchanges, it indicates decreased liquidity and is often followed by bullish price movements. The current drop in balances mirrors a similar trend seen in 2020 before Bitcoin soared to its all-time high in 2021, suggesting a potential repeat scenario.
Moreover, institutional demand for Bitcoin is on the rise, with data showing a notable increase in purchases of spot Bitcoin ETFs by institutional investors. This surge in demand has previously led to price hikes, setting the stage for further gains in the market.
As the crypto world eagerly anticipates a Q4 rally, analyst Timothy Peterson suggests that Bitcoin’s price may dip momentarily before potentially reaching new highs in the near future.
Disclaimer: This article does not offer investment advice. Readers should always conduct their own research and consider the risks involved before making any financial decisions.
