Bitcoin (BTC) is up by 1.8% to $63,900,
pulling back slightly from a high of $64,793 this week. Traders are closely
watching the resistance at $65,000–$66,000, which could signal the start of a
more significant rally. The rally, however, may have already begun when Bitcoin
broke through the $60,000–$62,000 resistance, following the Federal Reserve's
(Fed) half-point interest rate cut. This action has boosted risky assets like
cryptocurrencies, with Bitcoin jumping after the Fed's decision.
The next key resistance levels are at
$70,000–$72,000, with the ultimate upside targets at $87,000–$90,000, which
could be achievable by the end of October. While these targets might seem far
off, September, traditionally a difficult month for the crypto market, has seen
Bitcoin rise by 8.0% so far.
Additionally, the People's Bank of China
(PBOC) followed the Fed's lead by cutting lending rates, reducing its
medium-term lending facility loan rate from 2.3% to 2%. On September 24,
Beijing announced its largest stimulus package since the pandemic, injecting
196.5 billion Yuan through 14-day reverse repos. Many analysts believe more
aggressive stimulus measures will be needed to lift China's economy from its
current slump. Despite these broader economic concerns, the short-term outlook
for the crypto market remains positive, with October historically being a
strong month for cryptocurrencies.
On the political front, Democratic nominee
Kamala Harris recently expressed support for digital assets, a stance that sets
her apart from President Joe Biden, who has received a D grade for his approach
to crypto. Harris, initially graded B by Coinbase’s "Stand With
Crypto" initiative, saw her rating retracted to "NA" due to a
lack of a clear crypto policy. Meanwhile, Republican nominee Donald Trump has
maintained his A rating for his pro-crypto stance. If Harris provides more
clarity on her position, she could attract support from crypto enthusiasts.
Institutional activity remains steady, with
BlackRock's IBIT, Fidelity's FBTC, and Grayscale's GBTC reporting net inflows
of $207.2 million last week. Although these inflows suggest moderate activity,
they indicate that large investors have already placed their bets on the
upcoming crypto rally, likely anticipating market moves ahead of the U.S.
presidential election.