The crypto market is going up today, October 2, with Bitcoin price surging to $119,000. Ethereum price soared to $4,375, XRP to $2.965, and Binance Coin (BNB) to $1,035. The market capitalization of all coins jumped to $4.07 trillion.
ZCash (ZEC) price soared by 57%, bringing its valuation to over $2 billion. DeXe price was up by 23%, while SPX6900, Pudgy Penguins, Sonic, nd Aerodrome Finance rose by over 10% in the last 24 hours.
Crypto market rallies as Fed rate cuts odds jump
The first reason why the crypto market is going up today is that the odds that the Federal Reserve will cut interest rates in the coming meeting.
These odds jumped after ADP published weak jobs numbers on Wednesday. The report showed that the economy lost over 36,000 jobs in September after losing another 3,000 in August.
The most recent Bureau of Labor Statistics (BLS) report showed that the economy created just 22,000 jobs in August. A revision also showed that it lost jobs in June. Another report this week showed that US hiring slowed in August.
The BLS is scheduled to release the September jobs numbers on Friday this week. However, it is unclear whether it will do that as the government has shut down. Still, economists expect the report to show that the economy created 39,000 jobs in September.
A Federal Reserve interest rate cut favors the crypto market because these coins are risky assets. In the past, these assets do well when the bank was either cutting rates or when it had a dovish outlook.
Crypto prices are jumping as the ETF approval season nears
The other main reason why the crypto market is jumping is that the altcoin ETF approval season has arrived.
Fund managers have filed for over 70 ETF applications in the past few months, with the deadline for most of them being this month.
Litecoin will go first as the final deadline for the Grayscale Litecoin Trust is today. Coins like XRP, Solana, Dogecoin, and Hedera Hashgraph come later this month.
Altcoin ETF approvals will be highly bullish for the crypto industry, and it will inject more institutional funds. A good example of this is Ethereum ETFs, which have brought in over $12 billion in inflows since their inception. Bitcoin ETFs have had over $58 billion in inflows.
More data shows that there is robust demand for altcoin ETFs as top coins like Solana, XRP, and Dogecoin have had substantial inflows this year.
Bitcoin price has formed a bullish flag pattern
The other notable reason why the crypto market is going up today is that Bitcoin price has formed a bullish flag chart pattern, pointing to a robust Uptober rally this year.
The daily timeframe chart shows that the coin has formed a bullish flag pattern, which is made up of a descending channel and a vertical line, which resembles a hoisted flag. In most cases, this flag normally leads to a strong bullish breakout.
Bitcoin price has also remained above the 50-day moving average and the Ichimoku cloud indicator. It has also moved to the strong pivot reverse point at $118,750, pointing to more upside towards the extreme overshoot level at $131,250.
A Bitcoin price surge normally leads to more gains in the crypto market as the coin usually sets the tone.
Historical perspective is boosting to cryptocurrency market rally
The other reason why the crypto market is going up is that history shows that October and the fourth quarter of the year are the most bullish for the crypto market.
Bitcoin has an average return of 80% in the fourth quarter since 2013. Its monthly return in October is 20%. Most notably, since 2013, the coin only dropped in 2018 and 2014. It jumped by 10% last year and 28% a year earlier.
Therefore, the ongoing crypto market rally is because investors anticipate that the trend will happen again this year.
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