Uptober underway: Bitcoin closes in on seven-week high at $120K

Crypto markets have surged over the past day, culminating in a seven-week high for Bitcoin as the historically bullish month of October begins. 

Bitcoin prices have skyrocketed 4% over the past 24 hours, with the world’s leading digital asset hitting $119,450 on Coinbase in early trading on Thursday, according to TradingView.

This is the highest price Bitcoin has reached since Aug. 14, seven weeks ago, when it started correcting from its all-time high.

Bitcoin has now cleared resistance at $117,500, but faces a little more at the $120,000 level. A break above this level would clear the way for new peak prices, but it has cooled slightly, retreating to $118,947 at the time of writing.

The big move has pulled total market capitalization up 3.5% to $4.16 trillion and renewed sentiment and optimism for a bullish month of “Uptober.” The move has also pushed Bitcoin’s market cap to $2.37 trillion, above that of Amazon, according to CompaniesMarketCap. 

October is Bitcoin’s most bullish month of the year, historically, with gains in 10 of the past 12 Octobers, according to CoinGlass.  

BTC taps a seven-week high on Coinbase. Source: Tradingview

Labor market weakness leads to rate cuts

US job openings increased marginally in August while hiring declined, according to data released this week by the Bureau of Labor Statistics. 

This has perpetuated labor market woes, which could prompt the Federal Reserve to cut interest rates again later this month, a development that is bullish for high-risk asset classes, such as crypto.

“I think front and center, it’s to do with the weak ADP employment report, which followed a softer consumer confidence print earlier this week, where the labour market differentials declined,” IG market analyst Tony Sycamore told Cointelegraph. 

He added that this suggests the unemployment will likely rise from 4.3% to 4.4% in September, “guaranteeing more Fed rate cuts.”

“As traditional economic indicators weaken, Bitcoin’s rally past $118,000 demonstrates its increasing sensitivity to monetary policy outlooks and its appeal as a hedge against economic uncertainty,” said Nick Ruck, director at LVRG Research.

CME futures prediction markets now show a 99% probability of a 0.25% rate cut at the Fed’s next meeting on Oct. 29, up from a 96.2% probability on Monday.

Altcoins are also on fire

Bitcoin is leading the market higher, but Ether has also made more than 5% on the day, pushing prices up to $4,390, its highest level since Sept. 22.

Other altcoins seeing even higher gains at the moment include Solana, Dogecoin, Cardano, Chainlink and Hyperliquid (HYPE), with all rising more than 6% on the day.