QCP Capital analysts remain hopeful for an “Uptober” bullish rally if Bitcoin holds above the $60,000 support level.
“US stock indices have rebounded with the S&P 500 hitting new highs. Although the same level of optimism is yet to be seen in cryptocurrencies, we remain hopeful for an ‘uptober’ bounce as long as the key support level at $60,000 remains intact. is maintaining,” said QCP Capital analysts.
As of Friday morning trading, the Dow Jones Industrial Average was up 0.5% and the S&P 500 was up 0.3%. The price of Bitcoin also rose slightly by 2%, exceeding $62,000, and the global cryptocurrency market capitalization was $2.27 trillion, up 1% over the past 24 hours.
The rise in stocks came after Friday’s blended Producer Price Index (PPI) data still appeared to support expectations of a 25 basis point interest rate cut from the Federal Reserve in November. The CME FedWatch tool now indicates there is an 85.9% chance of such a cut at the next Federal Open Market Committee meeting. Recent data from the U.S. Bureau of Labor Statistics showed core PPI growth was 2.8% per year, slightly above expectations of 2.7%.
“Friday’s PPI data is the main risk event of the week,” QCP Capital analysts said. They emphasized the importance of these indicators in assessing the strength of the U.S. economy amid cooling inflation.
Bitcoin futures funding rates have remained stable over the past week.
In a separate report, Coinbase analysts David Duong and David Han wrote that despite Bitcoin’s lackluster price action this week, “market sentiment remains relatively optimistic, as evidenced by last week’s stable perpetual funding ratio and open interest.” “There is no change,” he said.
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The Bitcoin outstanding interest-weighted perpetual futures funding rate is currently +0.0049%, according to Coinglass data. This means that long positions are still benefiting short positions, indicating a bullish mood in the market.
Macroeconomic factors affecting cryptocurrency performance are shifting focus from monetary policy to the US election outcome, Coinbase analysts say, as expectations for interest rate cuts remain broadly stable despite recent rises in headline CPI and core PPI. emphasized.
They also pointed out that China’s fiscal policy briefing this Saturday could indirectly impact the cryptocurrency market, especially during the period when many markets are closed.
“Cryptocurrency markets can be used as a way to express a proxy view on the size and strength of financial announcements,” they said.
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