Bitcoin rose by more than 2% today, and as the market regained its strength starting in October, Bitcoin ( BTC ) once soared to around $86,150.
The backdrop for this round of gains is that a bank with a management scale of $3 trillion has raised its price target for Bitcoin, and spot ETF capital inflows have also turned positive again.
Bitcoin returns to $86,000, Uptober is activated
Bitcoin is currently up by about 2%, at $85,956.77, which is slightly stronger than the overall crypto market's 1.9% increase. BTC Once reached $86,150 during trading, and buying pressure pushed the price back above the crucial $85,000 level.
This trend occurred as Bitcoin entered October. Historically, October has often been a month when BTC performs strongly. In the past 13 Octobers, Bitcoin closed higher on 10 occasions, with an average increase of 18.71%. This has also enhanced the bullish sentiment in the market for the start of “Uptober”.
This round of gains also triggered liquidations across the market. In the past 24 hours, approximately 77,543 traders were liquidated, with a total liquidation amount reaching 324.68 million US dollars.
Citi's forecast drives up Bitcoin prices
The main reason for the latest rise in Bitcoin is that Citibank released a new bullish price forecast. The bank raised its 12-month target price for Bitcoin from $82,000 to $113,000, citing increased crypto activity, a more favorable macroeconomic environment, and a rebound in demand for ETF.
This forecast has boosted investors' confidence, especially as Bitcoin begins October in a more robust manner.
In addition to Citibank raising its target price, the US spot Bitcoin ETF recorded a net inflow of $102.7 million on October 1st, reversing the net outflow of $148.7 million from the previous day.
Previously, Bitcoin ETF recorded a cumulative net inflow of $3.1 billion in a row, until there was an outflow on September 30th.
The probability of the Federal Reserve raising interest rates has dropped to 44%
Another important positive development comes from the Federal Reserve. John Williams, Chairman of the New York Fed, stated that there is “no urgency” to raise interest rates again.
After he made the aforementioned remarks, data from CME FedWatch showed that the probability of a rate hike in October dropped to around 44%. A decrease in market expectations for another rate hike in the short term usually alleviates the pressure on risk assets such as Bitcoin.
This also adds another layer of support to the upward trend in October.
$86,837 becomes the next challenge
Bitcoin's latest round of gains has pushed the price back near the upper edge of the range that has been maintained since it rose above $79,500. With BTC currently standing above $85,957, traders are watching to see if it can break through the recent high of $86,837.30.
If it can continuously break through $86,837, it may open the way to $87,000, followed by $95,000 and $100,000. However, BTC needs to first break through this recent high point to confirm stronger upward momentum.
On the downside, if it falls below $85,000, Bitcoin could retreat to the $83,000 range.
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