Cryptocurrencies are experiencing a surge in positive sentiment today, led by Bitcoin's impressive 4% gain with the upswing being attributed to a growing appetite for risk, marked by a slight decline in the dollar index and yields. In the United States, politicians have temporarily resolved the deadlock over the federal budget for fiscal 2024, granting an additional 45 days for further negotiations and alleviating short-term market concerns regarding a potential 'US government shutdown.' October, often referred to as 'Uptober' in crypto circles, historically ranks among Bitcoin's best-performing months and tends to benefit the broader stock market as well. However, global factors have likely bolstered Bitcoin today, as indices show gains while yields drop. Meanwhile, U.S. lawmakers are urging SEC Chair Garry Gensler to approve Bitcoin ETF applications, given the absence of compelling reasons for their consistent rejection which seems to indicate a widespread change in approach to the crypto narrative. While altcoins like Kusama (6%) and Solana (5%) have made gains, the spotlight remains firmly on Bitcoin, which typically leads the charge during rebound phases, with other altcoins typically outperforming only when Bitcoin enters overbought territory or enters a sideways trend. If this positive performance continues, we could be seeing a new flow of interest into the crypto space heading into the final quarter of the year.
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