Market Rally
Over the past week, Bitcoin has surged 14% from a range low near $108,600 to approach $124,000, driving the total cryptocurrency market capitalization above $4.21 trillion. The rally has been fueled by a combination of macroeconomic uncertainty and robust on-chain buying pressure.
US Government Shutdown Effect
The partial federal government shutdown in early October delayed key economic data releases, heightening investor uncertainty. Bitcoin’s relative resilience amid postponed consumer price index and jobs reports has attracted risk capital into digital assets as traditional markets awaited clarity.
On-Chain Buying Pressure
Analytics from CryptoQuant showed a one-hour taker buy volume spike exceeding $1.6 billion across major exchanges. Simultaneously, the Coinbase Premium Gap—which measures price divergence between Coinbase (retail-heavy US market) and Binance—increased to $91.86, the highest since mid-August. This gap indicates that US investors are willing to pay a significant premium for immediate Bitcoin access.
Technical Outlook
- Resistance near $130,000 remains a key barrier, with large sell orders clustered above this level.
- Support has formed around $120,000, which analysts suggest must hold for sustained momentum.
- CME futures markets show a 99% probability of a 25 basis-point rate cut at the Fed’s Oct. 29 meeting, reinforcing bullish sentiment.
Investor Perspectives
“Bitcoin’s movement toward a new all-time high appears genuine and organic,” commented Bitfinex analysts, adding “Stimulus cheque speculation and steady ETF inflows provide a clear tailwind.”
Outlook
As Bitcoin pressurizes fresh all-time highs, the next week’s daily closes will be crucial in confirming a sustained breakout. Should macro data remain muted and ETF inflows persist, the path toward record prices may be well supported heading into year-end.
Comments (0)