During the National Day holiday, mainstream cryptocurrencies collectively rose, and the underlying logic is fully analyzed
🇨🇳 National Day holiday, the cryptocurrency market is also getting 'hot'! $BNB BNB rose over 7.34%, $BTC BTC rose 1.25%, ETH rose 2.86%, SOL rose 3.65%, $DOGE rose 2.51%, and CAKE surged by 26.98%... This wave of increase is not accidental; there are multiple driving forces behind it~
1. Macro liquidity release, global funds 'rise with the tide'
The balance of the U.S. Treasury General Account (TGA) is about to reach the target of $850 billion. Once funds flow back into the financial system, it will significantly boost the prices of risk assets. Cryptocurrencies like Bitcoin, as part of risk assets, will naturally rise. At the same time, the Federal Reserve cut interest rates by 25 basis points in September, and the loose monetary environment has injected vitality into the market.
II. The Seasonal Pattern of 'Uptober'
The cryptocurrency market is known as 'Uptober', and October has historically been a strong month for Bitcoin. Over the past decade, Bitcoin's average return in October has exceeded 20%, making it one of the best-performing months of the year. Institutional investors' asset allocation adjustments at the beginning of the quarter have further reinforced this seasonal trend.
III. Continuous Entry of Institutions Boosts Market Confidence
The strong demand for Bitcoin ETFs and the continuous inflow of institutional funds have given the market more confidence. The layout by giants like BlackRock, as well as companies incorporating Bitcoin into their asset allocation, indicate that virtual currencies are shifting from 'speculative tools' to 'macro assets'. This trend of institutional endorsement provides long-term support for the price increase.
IV. Advantages and Ecological Development of Various Currencies
- BNB: The Binance ecosystem continues to expand, with DeFi integration and a token burn mechanism reducing its inflation rate to 0.85%, while the favor of institutional funds has also driven its price up.
- BTC: The supply scarcity highlighted after the halving, coupled with the narrative of 'digital gold' becoming widely accepted, has made it a choice for institutions to hedge against inflation. Citigroup even predicts that it may rise to $135,000 by the end of the year.
- ETH: Ethereum's technological upgrades and the prosperity of DeFi and NFT ecosystems have made its position in the smart contract field unshakeable, continuously attracting fund inflows.
- SOL: The characteristics of high-performance blockchain are widely applied in DeFi and NFT fields, and the expansion of the ecosystem has brought strong demand growth.
- DOGE: Community-driven and boosted by social media popularity, it maintains vitality in the meme coin space, with retail sentiment driving its price volatility.
- CAKE: As the platform token of PancakeSwap, the active DeFi ecosystem and user growth have provided value support.
However, it is important to remind everyone that the virtual currency market is highly risky. These analyses only outline the current logic of the rise and do not constitute investment advice. Investment should be cautious, and thorough research must be done before making decisions!
