Bitcoin has surged past the $120,000 mark, a milestone not reached since mid-August, as traders gear up for a potentially strong October in risk assets.
The cryptocurrency has been on an upward trajectory over the last five days, bouncing back from its late September dip. Experts highlight renewed optimism about macroeconomic factors that might bolster risk assets as we approach the year’s end.
In derivatives trading, Bitcoin futures are signaling bullish trends with open interest hitting an unprecedented $32.6 billion. This indicates that traders are anticipating further gains. On-chain analyst Skew observed that short positions are accumulating too, which could lead to a short squeeze scenario.
Attention is particularly on the upcoming Federal Reserve meeting at this month’s close. The meeting might proceed without new employment data due to the government shutdown. Treasury Secretary Scott Bessent mentioned to CNBC on Thursday that this shutdown could further strain economic conditions.
“We may experience setbacks in GDP growth and impacts on American workers,” he stated.
Although historically minor in economic impact, President Donald Trump’s threat of dismissing approximately 750,000 federal employees could have significant repercussions under current circumstances.
The enthusiasm for cryptocurrencies might also be driven by expectations of an altcoin season approaching as several altcoin-related ETF applications await approval once governmental operations resume.
Canary Capital’s Litecoin ETF is expected to receive feedback today while others face deadlines between October 10 and 24. However, the Securities and Exchange Commission (SEC) announced on Wednesday it will pause application reviews during the shutdown period.
Like Bitcoin, altcoins have seen price increases over the past day with DOGE rising nearly 3%. The CoinDesk 20 Index—which monitors performance of top crypto assets—has climbed by 1.5% within this timeframe
This week Paul Howard from Wincent was initially doubtful about Bitcoin’s recovery but turned optimistic after observing recent market strength.”
“With BTC now trading at levels unseen since mid-July&44; total market capitalization exceeds $4 trillion again&44;” he remarked&46; ”a gradual climb above $115 indicates likely stability above this threshold with CME gap securing floor at $&#110&#48amp#48amp#. ”
&ldquo I anticipate sustained rally beyond $amp#120;amp##4in coming weeks " added
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