Bitcoin Rebounds Near $64K, Fueling Market Optimism

Bitcoin's price bounced back over the weekend, nearing $64,000, after U.S. employment data exceeded expectations, boosting confidence in the economy.

The cryptocurrency reached $63,905 by Monday morning, but retraced to around $63,660 at the time of writing. Earlier in the week, Bitcoin had briefly dropped to around $60,000, following Iran’s attack on Israel.

The rally began after the U.S. reported 254,000 jobs added in September, far surpassing projections. Analysts like Min Jung from Presto Research believe this reinforces hopes for a balanced economic recovery.

Rachel Lucas of BTCMarkets noted that the improved market sentiment, coupled with the likelihood of a Federal Reserve rate cut in November, has injected liquidity into the crypto space. The FedWatch Tool from CME Group indicates a nearly 98% chance of rates being lowered, a move that typically encourages riskier investments like Bitcoin.

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Lucas also pointed out that the reduction in Bitcoin held on exchanges is driving bullish momentum, as it lessens the potential selling pressure. However, for Bitcoin to maintain this upward trend, it would need to break past $64,500, with a potential next target of $66,000.

Despite the optimism, both Lucas and Jung warned that geopolitical risks in the Middle East could derail the current rally. Though October has been slow for Bitcoin so far, many remain hopeful that the momentum will build as the month continues.

Alexander Zdravkov