QCP said in its latest market analysis that after a turbulent start, the October rally appears to be back on track. Bitcoin is currently trading at levels similar to last Monday.
The “Uptober” storytelling coupled with strong non-farm payrolls has helped Bitcoin find strong support around $60,000. The upcoming HBO Bitcoin documentary has also brought more mainstream attention to cryptocurrencies, especially MEME tokens associated with Len Sassaman, which are also beginning to gain traction.
Despite a poor start last week, option flows still point to a bullish fourth quarter. With further rate cuts planned and Bitcoin’s strong correlation with stocks, optimism remains for a strong October.
The U.S. Consumer Price Index (CPI) will be in focus this Thursday. Recent strong U.S. wage and employment data will keep the market closely watching for signs of rising inflation. The Fed’s rate cut expectations were lowered from 50 basis points to 25 basis points in a week, and this week’s data may determine whether further rate cuts are priced in.