The Uptober narrative is gaining traction once again as Bitcoin recovers from the previous week's volatility. In the past 24 hours, Bitcoin reached a daily high of almost $64,000 before settling around $63,000. Analysts from QCP Capital assert, 'After a shaky start, Uptober seems to be back on track, with Bitcoin holding steady at levels similar to where it started last Monday. With additional rate cuts lined up and Bitcoin's strong correlation to equities, we remain optimistic about a strong October.'
The Uptober trend is rooted in October's historical performance, which has averaged nearly 30% gains during the month in eight of the last nine years, according to QCP Capital.
Recent macroeconomic factors, particularly strong Non-Farm Payrolls (NFP) data from the U.S., have bolstered optimism for risk assets. 'The employment figures have helped Bitcoin find strong support above $60,000,' analysts noted. The U.S. NFP exceeded expectations significantly, reaching 254,000 compared to the estimated 147,000, with the unemployment rate falling to 4.1%, lower than the anticipated 4.2%.
Investors are now closely monitoring the U.S. Consumer Price Index data set to be released this Thursday. Given the strong wage and job numbers, analysts suggest that the market will be attentive to signs of cooling inflation in Thursday's report.
Recent positive economic data may have influenced interest rate traders' expectations regarding potential rate cuts by the U.S. central bank. According to the CME FedWatch tool, there is an 88.9% likelihood of a 50 basis-point cut at the next Federal Open Market Committee meeting on November 7.
In the derivatives market, QCP Capital analysts observed that the distribution of options indicates a bullish outlook for Q4. 'Despite the rough start last week, options flows are still pointing to a bullish Q4, as we continue to see buyers of December $75,000 and $95,000 strike price calendar spreads.'
Additionally, increased attention on digital assets may arise from the upcoming HBO documentary, 'Money Electric: The Bitcoin Mystery,' which speculates on the true identity of Satoshi Nakamoto. 'The documentary has brought more mainstream attention to crypto,' the analysts concluded.
In the memecoin sector, major tokens have posted double-digit gains, with The Block’s GMCI Meme Index rising over 10%. The index tracks 17 top memecoins, including Shiba Inu and Dogecoin, and has seen a year-to-date increase of over 171%.
According to CoinGecko data, the top three global cryptocurrency gainers are all memecoins, with Dogwifhat, Popcat, and Pepe rising 20%, 18%, and 14%, respectively. Smaller tokens like Estee, GIGA, and SPX6900 have seen even greater gains of 140%, 92%, and 74% over the past day.
The sentiment is also reflected in the PolitiFi sub-sector, where Trump-inspired memecoins have surged. The market cap for PolitiFi memecoins increased by over 15% in the past day, reaching $750 million. Notable gainers include MAGA, MAGA Hat, and the misspelled Doland Tremp.
Disclaimer: The Block is an independent media outlet. This article is for informational purposes only and is not intended as legal, tax, or investment advice.
