Bitcoin (BTC) price saw some relief rally today increasing by around 5% in the last 24 hours registering a high of around $ 20,270 and swing trading between high $ 19k and low $ 20k.
The total crypto market cap as per the time of writing this press article according to CoinMarketCap website is $ 961,23 Billion.
This is most probably due to the narrative that the US Federal Reserve might be pushed to finally pivot their continuous interest rates hikes in order for them to preserve the financial stability and to avoid a further economic slowdown that is leading to more recession and so far failed to contain the inflation.
However not everyone is sharing this optimistic view, especially after the latest hawkish statements from the Fed’s Chairperson “Jerome Powell” whom has recently stated that they will do everything possible and in their power to restore inflation to its previous rates at around 2%, and that more pain is to be expected in the near future.
Despite the dollar index (DXY) falling to a 9 day low, observers are expecting a renewed dollar strength which is usually accompanied by a fall in the financial markets like Stocks and Crypto.
Historically speaking, Bitcoin and Altcoins have performed well in October unlike the bloody month of September, that was always considered a bloodbath month for cryptocurrencies.
Taking into consideration the bearish sentiments and the overall unfavorable macro environment, Bitcoin isn’t expected to soar to new heights anytime soon, as this requires favorable conditions that are not currently present or expected in the upcoming weeks such as the Fed pivoting their continued aggressive monetary measures and liquidity tightening.
However there’s also some positive outlook by some observers that coming November and December, in the upcoming FOMC meetings, there’s talks of the FED reducing their interest rates hikes from 75 basis points to 50 basis points. This is yet to be seen depending on the new economic and financial data that will be collected and analyzed by then.
It is worthy to note as well, that Ethereum (ETH) ranked second coin by total market cap, has witnessed a surge by more than 2% in the last 24 hours and recorded a high of $ 1,365.
Many altcoins have registered impressive gains also, ranging from 3% to 5% on average for the top 50 coins ranked by total market cap.