Bitcoin recovers nearly half of losses from October crash amid expectations of Fed rate cut

According to , the price of Bitcoin (BTC) rebounded above the $112,000 resistance level over the weekend and is trading at $113,724 at the time of writing. crypto slate data. Bitcoin price has breached the $113,000 mark for the second time this week. On October 21st, BTC was trading at $113,678.

The latest price movements have allowed Bitcoin’s value to recover nearly half of the losses from the price crash earlier this month. The October 10th crash wiped out billions of dollars from the cryptocurrency market, and the price of Bitcoin plummeted to $103,000 by October 17th.

Fed rate cut is decisive

Bitcoin’s strong weekly closing price comes as the market expects the Federal Reserve to cut interest rates by 0.25% at its next meeting on October 29th.

The U.S. Bureau of Labor Statistics released September inflation data on Saturday that was lower than expected. According to the report, the consumer price index (CPI) and core CPI were both 3% in September, lower than the expected 3.1%.

As reported by financial newsletter Kobeissi Letter, CPI data suggests a Fed rate cut next week. CME Group’s FedWatch tool also puts the probability of the US Federal Reserve (Fed) cutting interest rates at 98.3%.

Lower interest rates usually lead to higher cryptocurrency prices as borrowing becomes cheaper and higher risk assets become more attractive.

Ethereum profits exceed Bitcoin

Over the past 24 hours, Ethereum (ETH) price has increased by 3.58%, almost double Bitcoin’s increase of 1.94%. crypto slate The data shows.

Solana (SOL) and Cardano (ADA) have both come close to Ethereum’s growth over the past day, rising 3.46% and 3.45%, respectively.

However, in terms of weekly gains, Bitcoin has gained 4.97% over the past seven days, more than double the trophy of Ethereum’s 2.37% gain.

According to the data, among the top 10 tokens, XRP price rose the most in the past week, increasing by 9.27%.

market is optimistic

Cryptocurrency markets are optimistic about the outlook for Bitcoin’s price rise, with this weekend’s rally solidifying its path to new all-time highs. A high-risk speculative Web3 investor known as Borovik at X pointed out that Bitcoin’s rise above the $113,000 level indicates “a new all-time high is coming.” Another user, Marzell, wrote:

“As long as prices remain above this area, the near-term bullish structure remains in place.”

Marzel added that if Bitcoin price momentum remains unchanged, the next significant target will be above $117,000.

Another Bitcoin trader who goes by Merlijn The Trader at X noted that the exchange’s Bitcoin reserves have fallen to 2.4 million. “Once supply dries up, prices won’t last long,” he wrote.

It is worth noting that the Bitcoin Fear and Greed Index has also risen sharply from fear to neutral territory, indicating a change in market sentiment. At the time of writing, there were 40 cases, up from 29 last week and 37 on Saturday.